Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, February 18, 1992 TAG: 9202180003
SECTION: BUSINESS PAGE: A-8 EDITION: METRO
SOURCE:
DATELINE: LENGTH: Medium
ROANOKE GAS CONSIDERS RULE CHANGES
Roanoke Gas Co. has asked its stockholders to approve bylaws changes to permit adoption of a dividend reinvestment and stock purchase plan and increase the number of authorized shares of stock.A special meeting has been called for 2 p.m. March 23 at the company's office at 519 Kimball Ave., N.E., Roanoke. Adoption of the amendments requires approval by two-thirds of the company's almost 900 shareholders.
One amendment would delete the present requirement that additional shares be offered to stockholders before they can be offered to others.
The gas company board in November adopted a dividend reinvestment and stock purchase plan enabling shareholders to invest in the company's stock without paying brokerage commissions. But that plan will not be workable until the removal of the requirement that additional shares be offered stockholders first, the company said.
If the amendment is approved, the company said, it intends to set up a dividend reinvestment and stock purchase plan and reserve 160,000 shares for issuance under the plan.
Directors of Roanoke Gas also asked for approval to increase from 1 million shares to 3 million the amount of authorized stock.
More available shares would give flexibility to raise equity by selling new shares or to issue shares for future property acquisitions, the company said. Also, the increase in authorized shares will enable payment of stock dividends or declaration of a stock split.
The amendment removing the requirement that stockholders have the first choice on additional shares could be used to discourage a takeover. However, Frank Farmer, company president, said the board is not aware of a present effort by anyone to obtain control of the company's stock. - Staff report