Govt, MPCL sign agreement, allowing removal of dividend distribution cap
- The company informed that accordingly, effective 1st July 2020, MPCL has been allowed to declare and distribute dividends in accordance with the provisions of the Companies Act 2017 (as amended from time time) and the Companies (Distribution of Dividends) Regulations, 2017. `
The Government of Pakistan and Mari Petroleum Company Limited (MPCL) have signed an amendment agreement to Mari Wellhead Gas Pricing Agreement 2015.
“We are pleased to inform that an Amendment Agreement to Mari Wellhead Gas Pricing Agreement 2015 has been signed/executed between the Government of Pakistan and MPCL on Saturday, April 17, 2021, giving effect to the ECC decision regarding removal of cap on dividend distribution by MPCL,” said MPCL on Monday.
The company informed that accordingly, effective 1st July 2020, MPCL has been allowed to declare and distribute dividends in accordance with the provisions of the Companies Act 2017 (as amended from time to time) and the Companies (Distribution of Dividends) Regulations, 2017.
Back in February, the Economic Coordination Committee (ECC) of the Cabinet allowed removal of dividend distribution cap on MPCL under Gas Pricing Agreement to ensure that the divestment transaction generates optimum sale proceeds for the government.
After due deliberations, the ECC allowed that the dividend distribution cap may be removed to ensure that the divestment transaction generates optimum sale proceeds for the government.
The ECC meeting further decided that the MPCL would ensure dividend distribution in accordance with the Provisions of Companies Act, 2017 and the Companies (Distribution of Dividends) Regulations, 2017.
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