The AGM will also consider the accounts as at March 31, 1998 and declare the dividend on preference and equity shares. Three new directors and two joint auditors are also to be appointed.

The company had in October last sought an approval for buy-back of shares, but had not come out with a specific percentage representing the extent to which it would buy-back its shares.

According to the notice for convening the AGM, Reliance has explained that the enabling resolution is in anticipation of the law being amended to allow buy-back.

"It is proposed to buy-back not exceeding 5 per cent of the total voting powers relating to the shares or other securities giving right to subscribe for shares of the company, from the existing security holders on a proportionatebasis and/or from the open market and/or from lots smaller than market lots of the securities and/or by purchasing the securities issued to the employees of the company pursuant to the scheme of stock option, subject to necessary enactment in this regard", states the notice.

"The buy-back of shares would entail investing of an amount which would not be less than the market value of the shares or other securities giving right to subscribe for shares of the company and shall be met out of the free reserves and/or the securities premium account and/or out of the proceeds of an issue specially made for the purpose or from such other sources as may be permitted by law", it adds.

The company has stated that the approval of the shareholders for such buy-back of shares was obtained at the extra-ordinary general meeting of the company on October 16, 1997. This approval is valid till January 15, 1999.

The resolution as set out in this notice is being proposed again as the law in this regard has not been amendedand the special resolution passed on October 16, 1997 would cease to be valid on January 15, 1999.

Based on the provisions of the Companies Bill, 1997, the resolution to be passed at the ensuing AGM is valid till September 25, 1999.