Islamabad October 2 2024: The Islamabad High Court has issued a directive in response to the petition filed by Mari Petroleum Company Limited to place a lien on additional 10% bonus shares in case of filer and 20% in bonus shares of non-filer, according to company filing to the exchange.
Share price of the company drops PKR 10.58 or 2.36 percent at today’s trading session at Pakistan Stock Exchange.
On September 30, 2024, wherein it was informed that the 800% bonus issue has been dispatched/credited to both physical and CDC shareholders of the Company on September 27, 2024. These shares were dispatched/credited after withholding 10% (for filers) and 20% (for non-filers) of the bonus shares as per the provisions of section 236Z of the Income Tax Ordinance, 2001 (the Ordinance) to cover the withholding tax liability (which is full and final) on bonus shares based on the day-end price on the first day of the book closure. The shareholders were requested to pay the withheld income tax to the Company, failing which will enable the Company to dispose the withheld bonus shares to recover the withholding tax liability on behalf of the shareholders.
However, post issuance of the shares, variation in the market price (as opposed to the first day of book closure on September 19, 2024) is observed that may not fully enable the Company to recover full withholding tax through sale of the withheld bonus shares, for such shareholders who do not remit money to the Company.
In order to resolve the subject matter and in the best interest of the Company, a legal backing is obtained through filing a petition with, the honorable Islamabad High Court (IHC) that has directed the Central Depository Company Limited (CDC) to place a lien on an additional 10% bonus shares of those shareholders who are filers and 20% of non-filers, in addition to the shares already withheld on account of tax, to facilitate the full recovery of tax under Section 236Z of the Income Tax Ordinance, 2001. Upon full recovery of the withholding tax, either received through payment by the respective shareholder(s) or through sale of the withheld bonus shares, the balance shares shall be immediately released to the shareholders.
Accordingly, the shareholders of the Company are once again requested to deposit their respective tax amount, by October 15, 2024, as already communicated through our Shares Registrar, Corplink (Private) Limited, in the bank account of the Company in Askari Bank Limited.
