In its bid to inject life into the operations of the company, the interim board of Godlink Insurance Plc, has secured the nod of its shareholders to recapitalise the company to enable it operate in full capacity and compete effectively in the insurance market.
This was granted at the 20th annual general meeting of the company held in Lagos recently.
At the meeting, shareholders permitted the board under special business to among other things carry out actions such as: Issuing up to 4,600,000 ordinary shares of 50 kobo each from the companyâ€™s share capital by way of rights issue in such proportion, at such time, for such consideration and upon such terms and conditions as the directors may deem fit subject to obtaining approval of relevant regulatory authorities; that the directors be authorised to raise additional capital by way of private/ special placement through the issuance of 2,000,000,000 irredeemable, convertible preference shares of 50 kobo each on such terms and conditions that shall be determined by the directors subject to obtaining the approval of the relevant regulatory authorities.
The company’s interim board Chairman, Mohammed Bintube, who thanked shareholders for their patience and long waiting to see the survival of the company, assured that challenges confronting the company were already coming to an end.
He however urged the shareholders to ensure they take up their rights when the rights offer starts.
The latest resolution by both the board and investors in the company was taken, six years, after the sack of the company’s former board and the regulator’s appointment of interim new board and management.
The National Insurance Commission (NAICOM) , had following anomalies and misstatements discovered in audited financial statements of Gold Link Insurance for the year ended December 31, 2011, sacked the board and management replacing them with interim board and management who have been mandated to bring the operations of the company back to life
Since then, the new board, has been struggling to-reposition the company but has not fully achieved the desired objective.
Acting Managing Director of the company, Funke Moore, said with the proposed lifeline, the management is optimistic that there will be light at the end of the tunnel in the company.
â€œIt is the hope of the board and management that the recapitalisation plan, which has received the approval of NAICOM, will be acceptable by the shareholders, this will enable us recover the lost confidence by our customers and also help us get new clients to enable the company bounce back to its former position as a leading insurance company in Nigeria,â€ she said
According to Moore, despite the current position of the company in the market, it still writes premiums in excess of N1billion and is meeting its obligations
She noted that the goodwill of the company, the brand equity and the kind of people (employees) the firm still retains, are its huge assets.
According to her, the company, will be raising about N3.3 billion through rights issue as well as preference shares to put back the company in its rightful place in the industry.
Addressing the shareholders at the meeting, interim board chairman, Mohammed Bintube, thanked shareholders for their patience and long waiting to see the survival of the company and assured that challenges confronting the company were already coming to an end.