notice of annual general meeting

Notice is hereby given that the thirteenth annual general meeting of shareholders of New Clicks Holdings Limited will be held at the registered office of New Clicks Holdings Limited, corner Searle and Pontac Streets, Cape Town on Tuesday, 27 January 2009 at 11:00, at which the resolutions set out below will be considered and, if deemed fit, passed with or without amendment.

1.
  
Ordinary resolution number 1 – adoption of financial statements
To receive and consider for adoption the annual financial statements of the company and the group for the year ended 31 August 2008.
   
2.
  
Ordinary resolution number 2 – reappointment of auditors
To reappoint KPMG Inc. as auditors of the company for the ensuing year.
   
3.
  
Ordinary resolution number 3 – re-election of director
To consider the re-election as a director of the company of Martin Rosen who retires in accordance with the company’s articles of association and being eligible, offers himself for re-election.
   
4.
  
Ordinary resolution number 4 – re-election of director
To consider the re-election as a director of the company of David Kneale who retires in accordance with the company’s articles of association and being eligible, offers himself for re-election.
   
5.
  
Ordinary resolution number 5 – re-election of director
To consider the re-election as a director of the company of Michael Harvey who retires in accordance with the company’s articles of association and being eligible, offers himself for re-election.
   
6.
  
Ordinary resolution number 6 – re-election of director
To consider the re-election as a director of the company of Fatima Abrahams who retires in accordance with the company’s articles of association and being eligible, offers herself for re-election.
   
7.
  
Ordinary resolution number 7 – re-election of director
To consider the re-election as a director of the company of John Bester who retires in accordance with the company’s articles of association and being eligible, offers himself for re-election.
   
8.
  
Ordinary resolution number 8 – re-election of director
To consider the re-election as a director of the company of Bertina Engelbrecht who retires in accordance with the company’s articles of association and being eligible, offers herself for re-election.
   
9.
  
Ordinary resolution number 9 – re-election of director
To consider the re-election as a director of the company of Fatima Jakoet who retires in accordance with the company’s articles of association and being eligible, offers herself for re-election.
   
10.
  
Ordinary resolution number 10 – approval of directors’ fees
To approve the proposed fees, payable to directors, as disclosed here, for the year to 31 August 2009.
   
11.
  
Ordinary resolution number 11 – directors’ authority over unissued shares
To renew the directors’ authority over the unissued share capital of the company until the next annual general meeting, subject to this authority being limited to issuing a maximum of 2.6 million shares in terms of the company’s obligations under the staff share incentive scheme.
   
12.
  
Ordinary resolution number 12 – distributions by way of a reduction in share premium
General authority to make distributions to shareholders by way of a reduction in share premium

To consider, and if deemed fit, to pass, with or without modification, the following ordinary resolution:

“Resolved that the directors of the company be hereby authorised, by way of a general authority to distribute, on a pro rata basis, to all shareholders of the company any share capital and reserves of the company in terms of section 90 of the Companies Act, No 61 of 1973, as amended, the company’s articles of association and the Listings Requirements of the JSE Limited, provided that:
  • the general authority shall be valid until the next annual general meeting of the company or for 15 months from the passing of this ordinary resolution (whichever period is shorter); and
  • any general distribution of share premium by the company shall not exceed 20% (twenty per cent) of the company’s issued share capital and reserves, excluding minority interests.
The directors of the company are of the opinion that, were the company to enter into a transaction to distribute share capital and/or reserves totalling 20% (twenty per cent) of the current issued share capital and reserves of New Clicks:
  • the company and its subsidiaries (“the group”) will be able in the ordinary course of business to pay its debts for a period of 12 months after the date of the notice of the annual general meeting;
  • the assets of the company and the group, fairly valued, will be in excess of the liabilities of the company and the group for a period of 12 months after the date of the notice of the annual general meeting;
  • the issued share capital and reserves of the company and the group will be adequate for ordinary business purposes for a period of 12 months after the date of the notice of the annual general meeting; and
  • the working capital available to the company and the group will be adequate for ordinary business purposes for a period of 12 months after the date of the notice of the annual general meeting.
   
13. Special resolution number 1 – general authority to repurchase shares
To consider and, if deemed fit, to pass, with or without modification, the following special resolution:
“Resolved that the company hereby approves, as a general approval contemplated in sections 85 and 89 of the Companies Act, No 61 of 1973, as amended (“the Companies Act”), the acquisition by the company or any of its subsidiaries from time to time of the issued shares of the company, upon such terms and conditions and in such amounts as the directors of the company may from time to time determine, but subject to the articles of association of the company, the provisions of the Companies Act and the Listings Requirements of the JSE Limited (“JSE”) as presently constituted and which may be amended from time to time, and provided that:
  • any such repurchase shall be implemented through the order book operated by the JSE trading system, without any prior understanding or arrangement between the company and the counterparty;
  • authorisation thereto being given by its articles;
  • this general authority shall only be valid until the company’s next annual general meeting, provided that it shall not extend beyond 15 (fifteen) months from the date of passing of this special resolution;
  • a press announcement will be published as soon as the company and/or its subsidiaries has repurchased ordinary shares constituting, on a cumulative basis, 3% (three per cent) of the initial number of ordinary shares, and for each 3% (three per cent) in aggregate of the initial number of shares repurchased thereafter, containing full details of such repurchases;
  • acquisitions by the company and its subsidiaries of shares in the capital of the company may not, in the aggregate, exceed in any one financial year 15% (fifteen per cent) of the company’s issued share capital of the class of the repurchased shares from the date of the grant of this general authority;
  • in determining the price at which the company’s shares are acquired by the company or its subsidiaries in terms of this general authority, the maximum premium at which such shares may be acquired will be 10% (ten per cent) of the weighted average of the market price at which such shares are traded on the JSE for the 5 (five) business days immediately preceding the date the repurchase transaction is effected;
  • in the case of a derivative (as contemplated in the Listings Requirement of the JSE) the price of the derivative shall be subject to the limits set out in section 5.84(a) of the Listings Requirements;
  • the company’s sponsor has confirmed the adequacy of the company’s working capital for purposes of undertaking the repurchase of shares in writing to the JSE upon when the company entered the market to proceed with the repurchase;
  • the company remains in compliance with paragraphs 3.37 to 3.41 of the JSE Listings Requirements concerning shareholder spread after such repurchase;
  • the company and/or its subsidiaries do not repurchase securities during a prohibited period as defined in paragraph 3.67 of the JSE Listings Requirements unless they have in place a repurchase programme where the dates and quantities of securities to be traded during the relevant period are fixed and full details of the programme have been disclosed in an announcement on SENS prior to the commencement of the prohibited period; and
  • the company only appoints one agent at any point in time to effect repurchases on its behalf.
The directors, having considered the effects of the repurchase of the maximum number of ordinary shares in terms of the aforegoing general authority, are of the opinion that for a period of 12 (twelve) months after the date of this notice of the annual general meeting:
  • the company and the group will be able, in the ordinary course of business, to pay its debts;
  • the consolidated assets of the company and group, fairly valued in accordance with generally accepted accounting practice, will exceed the consolidated liabilities of the company; and
  • the company’s and the group’s ordinary share capital, reserves and working capital will be adequate for ordinary business purposes.
Reason and effect of special resolution number 1
The reason for special resolution number 1 is to grant the directors of the company and subsidiaries of the company a general authority in terms of the Companies Act and the JSE Listings Requirements to acquire the company’s shares, subject to the terms and conditions set out in the resolution. The passing and registration of this special resolution will have the effect of authorising the directors of the company and subsidiaries of the company to acquire shares issued by the company.

The following additional information, some of which may appear elsewhere in the annual report of which this notice forms part, is provided in terms of the JSE Listings Requirements for purposes of this general authority:


Litigation statement
In terms of section 11.26 of the JSE Listings Requirements, the directors, whose names appear in the annual report of which this notice forms part, are not aware of any legal or arbitration proceedings, including proceedings that are pending or threatened, that may have or had in the recent past, being at least the previous 12 (twelve) months, a material effect on the group’s financial position.
Directors’ responsibility statement
The directors, whose names appear in the annual report, collectively and individually accept full responsibility for the accuracy of the information pertaining to this special resolution and certify that, to the best of their knowledge and belief, there are no facts that have been omitted which would make any statement false or misleading, and that all reasonable enquiries to ascertain such facts have been made and that the special resolution contains all information.
Material changes
Other than the facts and developments reported on in the annual report, there have been no material changes in the affairs or financial position of the company and its subsidiaries since the date of signature of the audit report and up to the date of this notice.
   
14 To transact such other business as may be transacted at an annual general meeting.
  All shareholders of ordinary shares in the company (“shares”) are entitled to attend, speak and vote at the annual general meeting. If you hold certificated shares (i.e. have not dematerialised your shares in the company) or are registered as an “own name” dematerialised shareholder (i.e. have specifically instructed your Central Securities Depository Participant (“CSDP”) to hold your shares in your own name on the company’s sub-register), then:
  • you may attend and vote at the annual general meeting; alternatively
  • you may appoint a proxy to represent you at the annual general meeting by completing the attached form of proxy and return it to the registered office of the company.
Please note that if you are the owner of dematerialised shares (i.e. have replaced the paper share certificates representing the shares with electronic records of ownership under the JSE Limited’s electronic settlement system, Share Transactions Totally Electronic (“STRATE”)) held through a CSDP or broker and are not registered as an “own name” dematerialised shareholder, you are subject to the mandate between yourself and your CSDP or broker:
  • if you wish to attend the annual general meeting you must contact your CSDP or broker, as the case may be, and obtain the relevant letter of representation from it; alternatively
  • if you are unable to attend the general meeting but wish to be represented at the meeting, you must contact your CSDP or broker, as the case may be, and furnish it with your voting instructions in respect of the annual general meeting and/or request it to appoint a proxy. You should not complete the attached form of proxy. The instructions must be provided in accordance with the mandate between yourself and your CSDP or broker, as the case may be, within the time period required by your CSDP or broker, as the case may be.
CSDPs, brokers or their nominees, as the case may be, recorded in the company’s sub-register as holders of dematerialised shares held on behalf of an investor/beneficial owner in terms of STRATE should, when authorised in terms of their mandate or instructed to do so by the person on behalf of whom they hold the dematerialised shares, vote by either appointing a duly authorised representative to attend and vote at the annual general meeting or by completing the attached form of proxy in accordance with the instructions thereon and returning it to the company’s transfer secretaries or registered office of the company not less than 24 hours prior to the time appointed for the holding of the meeting (excluding Saturdays, Sundays and public holidays).

On a poll the holders of ordinary shares are entitled to one vote per ordinary share.

By order of the board


AA Scott
Company secretary

14 November 2008