As mentioned above, BOI approval is required before the capital reduction process be effected. One of the supporting documents is a resolution of the shareholders which in principle specifies the purpose of the capital reduction. Given that 2 applications require to be filed with the MOC with 2 different stages, the 1st stage is to file the special resolution passed by the shareholders for the capital reduction. Upon obtaining the BOI approval for the capital reduction, another application needs to be filed with the MOC for the registration of the amendment of the Memorandum of Association for the capital reduction. As we do not know what activities EOT conducting and we have not seen EOT’s BOI certificates, one concern we do have though is that unlike LST, EOT is an active company and its level of capital could impact both the activities it conducts (eg. enabling it to fall within wholesale/retail exemptions) or enable it to comply with the required Debt : Equity ratio required by the BOI. We believe that these aspects should be fully looked into before the process is covered for EOT.