IKW ikwezi mining limited

Can someone shed some light on the probable outcome being a YES...

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    Can someone shed some light on the probable outcome being a YES on Resolution 5?

    The Company, as an exempted foreign company incorporated in Bermuda, is
    subject to the Bermuda Companies Act 1981. Under Bermuda law, shares may not
    be issued for consideration which is below their par value.
    In order to provide the Company with the ability to issue additional shares below the
    current par value of A$0.01 per Share, the Directors wish to seek Shareholder
    approval for a reduction of the Company’s share capital.
    Pursuant to Resolution 5, the par value of the Company’s shares (both issued and
    unissued) will be reduced from A$0.01 to A$0.001 and the number of shares in the
    authorised capital of the Company will be increased from 900,000,000 shares with a
    par value of A$0.01 each to 9,000,000,000 shares with a par value of A$0.001 each.
    Shareholders should note that if Resolution 5 is approved, the proposed
    capital reduction will not change the number of issued and paid-up Shares, or
    the percentage interest held by each Shareholder. All Shares on issue and
    those issued in future will have a par value of A$0.001 and will each rank pari
    passu in all respects with each other. Approval of Resolution 5 will have no
    effect on the underlying assets, business operations, management or
    financial position of the CompanyThe Company’s shares are fully paid and consequently the proposed capital
    reduction will not involve the diminution of any liability in respect of unpaid share
    capital. It will also not result in a return of any share capital or other assets to
    Shareholders. Any capital cancelled will be credited to the contributed surplus
    account of the Company, and will be utilised to partially offset the accumulated
    losses of the Company which, based on the audited consolidated financial
    statements of the Company and its subsidiaries for the financial year ended
    30 June 2014, amounted to approximately A$3,059,197.
 
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Currently unlisted public company.

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