Are you sure?

FHB board to request expanded powers to raise capital

Included on the agenda for the AGM of Land Credit and Mortgage Bank Rt (FHB) are proposals to amend the bank's articles of incorporation to allow expand the board's powers to make capital raises, issue employee shares, increase registered capital and issue bonds convertible for shares, the invitation to the AGM published on the website of the Budapest Stock Exchange (BÉT) reveals.
Currently, the board may only raise capital by issuing new A-series ordinary shares or B-series preference shares, or by restructuring assets not included in registered capital. At the AGM, the board will ask shareholders to approve a mandate to raise capital up to Ft 1.5 billion a year until September 30, 2008. The board would be able to issue shares to satisfy demand of holders of convertible bonds after demand of existing shareholders is met. A proposal by the State Privatization and Holding Rt (ÁPV), FHB's majority owner, would lower the level of ÁPV's stake under which a rule limiting shareholders' voting right to 10% comes into effect.