Hey,

Have any of you received the notification for the Stanbic Uganda Extraordinary General Meeting - the directors want to increase the borrowing powers by removing quite a number of restrictions. I think it's a bad Idea. I've tried to copy the notice for the Extraordinary General Meeting here, but I've failed to do so - anyone who can post it, please do so.

What do you guys think - and do any of you know the reason why they would need to increase their borrowing powers?

Please give a reference to the notice & we can check & revert, thanks. Nevertheless, & off the top, I think the borrowings are to accomodate lines of credit from the parent bank, Standard Bank ZA, in addition to the recent mega bonus issue capitalization which will give the bank capacity to underwrite larger business emerging from UG's emerging oil sector. Remember CNOOC Uganda came in this year & China owns 20%+ of Standard Bank ZA which they are using as the proxy to provide finance for its companies operating on the continent (SSA). If I'm right, then this is a +ve & expect larger earnings going forward.

^not all of us, members + guests, are part of the group. Thus, either paste the notice here or a public link. Wazua is fundamentally a public forum!

The special resolution is in order. Big banks have such in their MEMART. The notice of EGM is also clear that the reason for the special resolution is to enhance the borrowing powers of the directors in order for them to be able to borrow amounts that are necessary to support the company's business growth particularly in foreign currency lending activities.

They must have clinched a great deal now otherwise this could have waited for AGM