voluntary delisting of companies under the listing regulations of karachi stock exchange

Voluntary Delisting of Companies under the listing regulations of Karachi Stock Exchange Steps Time Line Step 1 Intimation to stock exchange of the intention of the majority shareholders / sponsors to purchase all securities and to de-list the company and the reasons thereof. Also intimate the minimum price at which the shares are proposed to be purchased. A formal application is required along wi th a non-refundable processing fee of PKR 100,000. Immediately upon holding of board meeting for such decision. Step 2 Furnish the stock exchange, the sponsors undertaking to purchase the shares at the proposed price. Within one week of the initial application Step 3 Appoint a prescribed purchase agent and furnish its undertaking to the stock exchange to purchase shares on behalf of the sponsors / majority shareholders. Purchase agent will provide a bank guarantee to secure its obligation. The bank guarantee can be waived in certain prescribed cases. Within one week of the initial application Step 4 Approval by the stock exchange of the application and the proposed purchase price of shares. ²- Step 5 Acceptance or rejection by the sponsors of the purchase price of shares as approved by the stock exchange. Within seven days of the conveying of stock exchange approval. Step 6 Company can file appeal with the SECP against the decision of the stock exchange. Within 10 days of the Stock Exchange decision. Step 7 Company will convene a general meeting of shareholders for approval of the de-listing on terms as agreed by the stock exchange. A special resolution is to be passed by a majority of 3/4th of the present shareholders either in person or through proxy. Meeting is to convened within 30 days of the decision of the stock exchange or the appeal. Step 8 Convey the decision of t he general meeting to all t he shareholders through registered post together with a copy of the special resolution. Also publish an announcement in two newspapers (including one of Karachi). The announcement must first be approved by the stock exchange. Immediately Step 9 Submit the following to t he stock exchange: (a) Copy of the special resolution as passed. (b) Complete list of shareholders showing the details as to: y shares held by majority shareholders and others y their names, category, number of shares, and y Addresses Within seven days of the holding of general meeting Step 10 The Securities will be purchased through the purchase agent for a period of 60 days thereafter. The securities will be purchased in the prescribed manner through KATS.

voluntary delisting of companies under the listing regulations of karachi stock exchange

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