Donewell Insurance Company Limited, is investing in infrastructure as well re-capitalising the company to enable it to undertake bigger insurance transactions
Speaking at the company’s Annual General Meeting in Accra, Mr Addo said the company had made provision for more than GH¢730,000 to finance both projects.
He said the new insurance law did not only test insurance companies but led to an increase in the number of operators from 23 to 36
Mr Addo said insurance companies were required to increase their capital base to a minimum of US$1.0 million under the new insurance law.
He attributed the requirement to the inflow of oil resources which would expect insurance companies to expand their capital base soon.
He said the global economy witnessed a decline from 2007 through 2008, with the economic growth rate falling from 5.1 per cent in 2006 to four per cent in 2008, adding that this had affected the demand for African goods and services, drop in direct investment in Ghana, and a marked decline in foreign remittances into the country.
He said these affected most companies in Ghana, hence the reduction in the companies investment income.
The meeting could not approve the increase of the ordinary shares of the company from 50 million to 500 million shares and the increase of the 50 preference shares to 25 million at a price US$ 0.20 cents per share.
According to some members the items could not be considered because prior notice was not given to shareholders, and the fact that it was also not included in the agenda of the meeting.
According to the Companies Code the company was supposed to give a 21 days notice to its shareholders before an item was discussed.
The meeting agreed to meet on December 17 to discuss and approve the two issues.
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