Linc Limited (LINC), Mitsubishi Pencil Company Limited (MITSUBISHI), and Uni Linc Private Limited (proposed Joint Venture Company) have entered into a Joint Venture Agreement to manufacture and sell high-quality, affordable writing instruments tailored for Indian consumers.
The initial paid-up capital for the company will be INR 200,000,000, divided into 20,000,000 Equity Shares, with MITSUBISHI holding 51% and LINC holding 49%. Significant terms of the agreement include MITSUBISHI nominating two Directors and LINC nominating one, with the LINC-nominated Director serving as Chairman and one of the MITSUBISHI Directors as Managing Director.
Certain decisions will require the affirmative vote of both parties at shareholder meetings, and MITSUBISHI will have the right to appoint auditors. There are no relationships to promoters or related parties, though MITSUBISHI holds a 13.45% stake in LINC. The Equity Shares will be issued at Rs. 10/- each, and there are no potential conflicts of interest arising from this agreement.