Prabhu Insurance Limited Is Holding Its 29th Annual General Meeting (AGM)

8th August 2025, Kathmandu

Prabhu Insurance Limited is holding its 29th Annual General Meeting (AGM) today, August 8 at the Prabhu Complex in Koteshwor, Tinkune.

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The meeting’s key agenda items include the approval of an 18% bonus share and a 0.9474% cash dividend to cover the tax on the bonus shares.

Key Decisions and Proposals

The AGM will address several critical proposals that will impact the company’s capital structure and future operations. The most significant proposals include:

• Dividend Distribution: The company proposes to give an 18% bonus share from its paid-up capital. This is a common way for companies to reward shareholders while retaining cash. Additionally, a 0.9474% cash dividend is proposed to cover the tax liability on these bonus shares, ensuring shareholders receive the full benefit.
• Rights Issue Amendment: The company has also proposed a revised rights issue. The initial plan for a 50.15% rights issue has been reduced to 47% to account for the increase in paid-up capital from the new bonus share distribution. This adjustment is necessary to maintain a balanced capital structure.
• Financial and Operational Approvals: The meeting will also review and approve the financial statements for the fiscal year 2080/81. Other important items on the agenda include appointing auditors and approving their remuneration for the upcoming fiscal year 2024/25, as well as making necessary amendments to the company’s Articles of Association and bylaws.

Review of Financial Statements and Governance

A significant part of the AGM will be dedicated to reviewing and approving the financial statements for the fiscal year 2080/81. This includes a detailed look at the balance sheet, profit and loss statement, and cash flow statement, providing a comprehensive overview of the company’s financial health. Approving these documents is a crucial step in corporate governance and provides transparency to shareholders about the company’s performance. The meeting will also include the appointment of a new auditor and the determination of their remuneration for the upcoming fiscal year, 2024/25, a standard procedure that ensures an independent review of the company’s finances.

Enhancing Corporate Structure and Flexibility

To keep up with a changing business environment, the AGM will also address necessary amendments to the company’s Articles of Association and bylaws. By granting the board of directors the authority to implement these changes, the company aims to become more agile and responsive to regulatory requirements and market dynamics. This move demonstrates a forward-thinking approach to management, ensuring that the company’s internal governance remains robust and flexible. Ultimately, these changes are designed to support the company’s long-term strategic goals and reinforce its commitment to sustainable growth.

Eligibility and Shareholder Impact

To be eligible to attend the AGM and receive the proposed dividends, shareholders must have been registered in the NEPSE system by July 17 (Shrawan 1). This is because the company closed its share register on July 18 (Shrawan 2) for the purpose of the meeting and dividend distribution. This policy ensures that only those who held shares by the specified cutoff date are included in the benefits and have a say in the decisions. The outcomes of this AGM are expected to significantly influence the company’s financial health and set a strong foundation for its future growth and development.

Reinforcing Shareholder Value and Strategic Growth

The decisions at the AGM are expected to significantly reinforce the company’s financial health and its value proposition for shareholders. The distribution of bonus shares, for example, increases the number of shares each shareholder owns, a move that is often seen as a sign of confidence in the company’s future profitability. The accompanying cash dividend for tax liability ensures that this benefit is not eroded by government taxes, thereby maximizing the return for shareholders. Furthermore, by strategically adjusting the rights issue, Prabhu Insurance is ensuring a stable and well-managed capital structure that is essential for funding future growth and development initiatives.

Looking Ahead: Laying a Foundation for Sustainable Growth

This AGM is a crucial event that will lay a strong foundation for Prabhu Insurance’s sustainable growth. By approving the financial statements and appointing new auditors, the company is upholding principles of good governance and transparency. The proposed amendments to the company’s bylaws will also provide the board of directors with the necessary flexibility to adapt to market changes and regulatory updates swiftly. Together, these measures are designed to enhance the company’s operational efficiency, strengthen its market position, and ultimately create long-term value for its shareholders. The company’s focus on both rewarding current investors and preparing for future growth highlights its commitment to a balanced and forward-thinking strategy.

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