Financial Daily from THE HINDU group of publications
Tuesday, Aug 13, 2002
Financial Daily from THE HINDU group of publications Tuesday, Aug 13, 2002 |
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Corporate
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Bonus Announcements HLL shareholders okay bonus debentures Our Bureau
MUMBAI, Aug. 12 SHAREHOLDERS of Hindustan Lever Ltd (HLL) approved the bonus debenture scheme of the company at the Bombay High Court-convened meeting held on August 9. The company said 430 shareholders holding 126.10 crore shares, representing 99.9994 per cent of the value of shares on which the poll was held, were present at the meeting. "The scheme will now be submitted to the Bombay High Court. The company will also seek other statutory approvals," the company said. HLL had altered the earlier announced bonus debenture scheme, including a special dividend of Rs 2.76 per share to the existing proposal of a bonus debenture of Rs 6 per share. In the altered scheme, the entire tax on bonus debenture and special dividend will be deducted out of the Rs 2.76 special dividend, ensuring that the face value of the bonus debenture is uniform at Rs 6, HLL had then said. The company will draw upon its general reserves to the extent of Rs 1,320 crore towards bonus debentures and will draw upon its profit and loss balance to the extent of Rs 608 crore towards the special dividend. The new scheme entails an incremental cost of Rs 473 crore. The changes were necessitated on account of the revised tax regime under the Finance Bill of 2002-2003 approved by Parliament. According to company sources, the special dividend of Rs 2.76 per share has been arrived at assuming that shareholders are in the highest tax bracket of 31.5 per cent. For shareholders in the highest tax bracket of 31.5 per cent, the revised scheme is self-financing one as the entire amount of special dividend would go as tax for the entire bonus debenture scheme, thereby leaving the bonus debenture unchanged at Rs 6 per share.
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