Dipped Products Limited has summoned an extraordinary general meeting (EGM) on February 18 to consider a special resolution to increase the authorised capital of the company from Rs. 400 million to Rs. 1 billion by the creation of 60 million ordinary ten-rupee shares.

The company has already announced that it would seek member’s approval for a one for one bonus issue which would double the present issued capital of Rs. 299.3 million necessitating an increase in the authorised capital.

An ordinary resolution for the consideration of members at the EGM states that Rs. 97.8 million from the company’s share premium account and Rs. 201.5 million from the revenue reserves would be capitalized to enable the bonus issue which will raise the company’s issued capital to Rs. 598.6 million.

The EGM will also consider an ordinary resolution to enable Mr. H. A. Pieris who is 71 years of age to continue as a director of the company by excluding him from the 70-year age limit specified in the company’s Act.

Pieris, a former Chairman of Richard Pieris & Col. Ltd., was a nominee of Richard Pieris on the Dipped Products board. Richard Pieris, who founded Dipped Products with Hayleys, has sold out its stake and exited from the company with a substantial capital gain but Pieris will continue on the DPL board.

The other Richard Pieris nominee on the DPL, Dr. Sena Yaddehige, has already tendered his resignation.