Colgate Palmolive Board recommends dividend, proposes reduction of capital

The Board of Directors of Colgate Palmolive India Ltd at its meeting held on May 03, 2007, inter alia, has approved recommendation of a Special 70th Anniversary Dividend of Rs 2/- per share on 135,992,817 equity shares of Rs 10/- each for the year ended March 31, 2007.

The board also approved a proposal for Reduction of Capital to return Rs 122.40 crores (excluding dividend distribution tax) to shareholders. This amount will be paid as a "Deemed Dividend" at Rs 9/- per share uniformly to all shareholders and the same will not be liable to tax in the hands of shareholders.

The Reduction of Capital, which is in excess of the Company's operational needs, is proposed under Section 100 of the Companies Act, 1956 and will be achieved by reducing the face value of the existing shares from Rs l0/- per share to Re 1/- per share. The number of shares issued, paid-up and outstanding and the pattern of shareholding will remain unchanged.

The proposal for Reduction of Capital is subject to approval by the shareholders at the ensuing Annual General Meeting and confirmation by the Bombay High Court.

The Register of Members & Share Transfer Books of the Company will remain closed from July 20, 2007 to July 27, 2007 (both days inclusive) for the purpose of payment of dividend and Annual General Meeting of the Company to be held on July 27, 2007.

Source : Equity Bulls

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