ISLAMABAD: The Federal Cabinet has allowed the name change of Summit Bank to Bank Makramah Limited and voting rights corresponding to his shareholding to Nasser Abdullah Hussain Lootah, sources in the Finance Ministry told Business Recorder.
On October 2, 2023, Finance Division informed the Federal Cabinet that the State Bank of Pakistan (SBP) Act, 1956, Section 4C (h) mandates SBP to licence, regulate and supervise scheduled banks and financial institutions that fall under the domain of the Bank. It was added that the SBP has been informed that Nasser Abdullah Hussain Lootah was now the controlling shareholder of Summit Bank Limited (SBL) with more than 51% shareholding.
Finance Division noted that the Summit Bank Limited had requested SBP for the following: (i) exemption from application of Section 14(1) (IV) of Banking Companies Ordinance (BCO) 1962; and (ii) change the name of Summit Bank Limited to Bank Makramah Limited.
Summit Bank shareholders approve change of name to Bank Makramah Ltd
Consequent to the request, State Bank of Pakistan had recommended the grant of exemption to Nasser Abdullah Hussain Lootah from application of the provision of Section 14(1) (IV) of BCO, 1962, to enable him to exercise his voting rights corresponding to his shareholding in accordance with Section 93 of the Act.
The relevant excerpts section14 of BCO, 1962 refer to regulation of paid-up and subscribed capital and authorised capital and voting rights of share-holders.
It was further stated that no banking company incorporated in Pakistan shall carry on business in Pakistan unless it satisfies the following conditions namely: IV. “The voting rights of any one shareholder, except those of Federal Government or a Provincial Government do not exceed five percent of the total voting rights of all the shareholders.”
Section 93 of the BCO, 1962 is related to power to exempt in certain cases: “the Federal Government may on the recommendation of the State Bank declare, by notification in the official gazette, that any or all provisions of this Ordinance shall not apply to any banking company either generally or for such period as may be specified.”
The Board of Directors of the Summit Bank in its 135th Board Meeting, held on 12-06-2023, granted the in-principle approval for change of name of the Bank to “Bank Makramah Limited”.
SBP also communicated no objection to the proposed change in name, and requested for the approval of the Federal Government, in terms of Section 88 of BCO, 1962, which states: “change of name by a banking company- Notwithstanding anything contained in section 11 of the Companies Ordinance, 1984, the Federal Government shall not signify its approval to the change of name of any banking company unless the State Bank certified in writing it has no objection to such change”.
Foregoing in view, the Finance Division proposed that exemption of application of Section 14(1) (IV) to Nasser Abdullah Hussain Lootah may be granted to enable him to exercise voting rights corresponding to his shareholding, and name of Summit Bank Limited may be allowed to be changed to Bank Makramah Limited in terms of Section 88 of BCO, 1962.
Copyright Business Recorder, 2023
Comments
Comments are closed.