The shareholders of Veritas Kapital Assurance Plc (NGX: VERITASKAP) will at its 46th Annual General Meeting (AGM) consider shoring up the company’s capital by way of merger and/or acquisition or any other form of business combination or arrangement with any company/companies or institution(s) whether foreign or local.
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The consideration to shore up capital is pursuant to the special resolutions of the shareholders of Veritas Kapital Assurance Plc passed at the Extra-Ordinary General Meeting of the Company held on December 10, 2019.
Veritas Kapital’s principal business is underwriting of non-life insurance risks, and by the pending recapitalization requirements set by the National Insurance Commission (NAICOM), the company requires a minimum paid-up share capital of N10 billion.
The shareholders had at an Extraordinary General Meeting (EGM) held on 10 December, 2019, considered and passed a special business resolution authorizing that Clause 6 of the Company’s Memorandum of Association be amended as follows: The Authorized Share Capital of the company is N12,000,000,000 divided into 14,000,000,000,000 units of Ordinary Shares of N0.50K each and 10,000,000,000 units of Preference Shares of N0.50K each.
According to its 2022 Annual Financial Statements, the company had an issued and paid up share capital of N6.93bn as at 31 December, 2022, with 13.86 billion outstanding shares.
The paid-up share capital falls short of what NAICOM’s recapitalization circular requires for the company’s principal business activity.
However, Justice Chukwujeku Aneke of the Federal High Court sitting in Lagos in 2022 held that the National Insurance Commission, NAICOM, cannot increase the statutory minimum solvency capital policy for insurance companies without the National Assembly amending the Insurance Act and Regulation 2003. The court also directed NAICOM to reverse itself on the increase in the statutory minimum solvency capital policy for Insurance companies.
At the Annual General Meeting of the members (shareholders) ofVeritas Kapital Assurance Plc to be held on the 18th of September 2023, at Veritas Kapital Assurance Plc, Plot 497 Abogo Largema Street off Constitution Avenue Abuja, FCT at 11:00am, the following ordinary business will also be transacted:
- To lay before the members, the Audited Financial Statements of the Company for the year ended December 31, 2022, together with the Reports of the Directors, Auditors, and Audit Committee thereon.
- To ratify the appointment of Mr. Sunkanmi Adekeye as an Executive Director.
- To approve the appointment of Ernst and Young as the External Auditors of Veritas Kapital Assurance Plc and to authorize the Directors to fix the remuneration of the External Auditors.
- To elect members of the Statutory Audit Committee.
- To re-elect the following Directors retiring by rotation and being eligible, have offered themselves for re-election:
a. Mrs. Priya Heal
b. Hajia Yabawa L. Wabi mni - To disclose the remuneration of Managers of the Company
The remuneration of the Directors of the Company for the year ending December 31, 2023 will also be considered, alongside the appointment of DCSL Corporate Services Limited as a Board Evaluation Consultant.
About the Company
Veritas Kapital Assurance Plc formerly known as UnityKapital Assurance Plc was incorporated in 1973 as a private liability Company under the name, Kano State Insurance Company.
On 14 March 2007, it acquired and merged with two other insurance companies and became a public limited liability group. Its shares are quoted on the Nigerian Stock Exchange.
Its Head Office is located at 497 Abogo Largema Street, Off constitution Avenue, Central Business District, Abuja Nigeria.
The group has 93.5% equity interest in Veritas Health Care Limited and 70% interest in Veritas Glanvills
Pensions Limited and 51.53% in Goldlink Insurance Plc.
The company was registered as a general business company and offers non-life Insurance products and services to individuals and institutions across Nigeria.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
