Question

Question # 1. Being finance manager of a manufacturing company in Oman, why you must have to arrange ‘Non Objection Certificates (NOCs)’ from all significant stakeholders before launch of fresh Initial Public Offering for your company (write reasons for all stakeholders separately)?

Answer 1

Non objection certificates to be obtained from all significant stakeholders before launch of initial public offering as-

1. Shareholders of the company-Non objection certificate are to be received by shareholders of the company as their control will be diluted after issue of fresh initial public offering.

2. Government-The company needs to take the approval of government because it would be no objection from government on the part of issue of fresh share.

3. Suppliers of the company also needs to issue non objection certificate because they will also be affected by issue of new shares because there would be new substantial stakeholders in the company who can limit their exposure to the company.

4. It needs to also take non objection certificate from its employees because they will also be affected from issue of fresh share as a substantial shareholder can have effect in their employment

5. Subsidiaries and associates also need to offer their non objection certificate because they will also be affected by issuance of new shares.