Api Power Postpones 21st AGM and Dividend Distribution Pending ERC Decision on Dividend Cancellation

Api Power Company Limited (API) had previously announced a 9% bonus share and a 0.4737% cash dividend (for tax purposes) to its shareholders for the fiscal year 2080/81, based on the company's net profit and share premium. However, the company received a letter from the regulatory body, the Electricity Regulatory Commission (ERC), stating that the dividend distribution cannot proceed as per current regulations. According to Section 22 of the Electricity Regulatory Commission Act, 2074, the company has the right to request a review of the decision by submitting additional documents within 15 days.

In line with this provision, Api Power Company Limited held a board meeting on Ashwin 10, 2081 and decided to file a request for review with the ERC on the same day. The request aims to seek reconsideration of the decision regarding the distribution of dividends. The company is now awaiting the ERC's decision on the matter, which is expected within 15 days, as per the legal provisions that allow the commission to either uphold or amend its previous decision.

As a result of this pending review, the company's 21st Annual General Meeting (AGM) and the book closure, which were originally planned, have been temporarily postponed. The company assures stakeholders that new dates for the AGM and book closure will be announced once a final decision is received from the ERC.