By Taofik Salako, Deputy Group Business Editor
Authorities at the Nigerian Exchange (NGX) Limited have suspended trading in the shares of Rak Unity Petroleum Plc as the downstream oil company begins voluntary winding up.
Shareholders of Rak Unity Petroleum Plc had at their Annual General Meeting (AGM) on June 4, 2021 authorised the board of the company to commence the winding up.
RAK Unity Petroleum was incorporated as a private limited liability company in December 1982. It converted to a public limited liability company in November 1987.
Citing Section 622 of Companies and Allied Matters Act (CAMA) 2020 which states: “A voluntary winding-up shall be deemed to commence at the time of the passing of the resolution for voluntary winding-up”, while NGX Regulation Limited (NGX RegCo) stated that it has placed full suspension trading in the shares of RAK Unity with effect from July 26, 2021.
According to the NGX, the suspension was to ensure a smooth winding up.
The NGX noted that the suspension was in line with Section 624 of CAMA 2020 which provides that “A transfer of shares, not being a transfer made to or with the sanction of the liquidator, and any alteration in the status of the members of the company, made after the commencement of a voluntary winding-up, shall be void”.
The winding up comes barely four years after the Board of Directors of Rak Unity Petroleum Company assured shareholders that its proactive strategies would sustain improvements in the operations of the company in the years ahead.
The board had assured that company would maintain its strong customer base by adhering to its four key pillars of quality assurance, innovative approach to meeting customers’ demands, great customer service and consistent on-time product delivery.
RAK Unity had recorded a turnover of N8.27 billion and gross profit of N460.45 million for the nine-month period ended December 31, 2016. The petroleum-marketing company had reported a turnover of N6.68 billion and gross profit of N448.70 million for the 12-month period ended March 31, 2016.
The board of directors then stated it decided to pay a dividend of 10 kobo per share to shareholders for the period ended December 31, 2016 after considering future growth and expansion of the company.
The retained earnings were to be reinvested in order to ensure sustainable growth, expansion and stability.
Leave a Reply