Vitafoam implements FG’s regulation, cancels N1.1 bn ordinary shares
Shareholders of a leading manufacturer of rigid foams and and other household materials, Vitafoam Nigeria PLC have unanimously endorsed the Company’s proposal to cancel 1,149, 155,936 unissued ordinary shares of 50 kobo each, in compliance with the Federal Government’s directive to all companies in Nigeria.
President Mohammed Buhari had on 7th August, 2020, signed into Law, the amended Companies and Allied Matter Act (CAMA), of which Section 124 stipulates by 31st December this year, all companies in Nigeria should have only issued shares as against the current system of operating issued and authorized share capital.
Vitafoam’s Chairman, Dr Bamidele Makanjuola told the shareholders at the Company’s hybrid Extra-Ordinary General Meeting (EGM) that Vitafoam had no basis to issue new shares to the shareholders and cancellation of the shares was the best option after evaluation. He underscored the need to comply with the government’s directive ahead of the deadline, as a law abiding corporate entity.
“After a careful evaluation of the various options, the Board decided that cancellation of the unissued shares is in the best interest of the company at the present time as there is no basis to issue shares. It is based on the foregoing that this Extra-Ordinary General Meeting was convened to seek your approval to cancel all the company’s unissued shares in compliance with the provisions of section 124 of the Companies and Allied Matters Act (CAMA 2020) and the Companies Regulation 2021 and to also amend some provisions of the Memorandum and Articles of Association of the company accordingly,” Makanjuola said.
Although some shareholders pleaded that the Company should convert the unissued shares to bonus issues, others believed that the timing was too short. However, the cancellation of the unissued shares was approved at the EGM.
Vitafoam, Nigeria’s premier manufacturer of foams, has carved a niche for itself as an innovative Company, with a vast array of high and superior quality products that grants consumers multiple choices. The Company leverages cutting edge equipment to manufacture customized mattresses and pillows for different segments of consumers, including babies.
The Company operates a top-notch corporate governance and reputed for consistent payment of dividend. It operates a dynamic board and management who are experts in their own fields.
Incorporates on August 4, 1962 and listed on the Nigerian Stock Exchange (now NGX) in 1978, the Company has the following subsidiaries : Vitapur Nigeria Limited, Vitabloom Nigeria Limited, Vono Priducts, Vitavisco Nigeria Limited and Vitaparts Nigeria Limited. The Group Managing Director, Mr Taiwo Adeniyi, had in some of his previous interviews attributed the Company’s success partly to its penchant for investment in Research and Development to ensure that products are manufactured to meet the needs of consumers.
