Motor Trade Finance Ltd, a co-operative which provides vehicle finance, said it will put a proposal to shareholders to increase its capital at a special meeting on October 29.
The increase in capital is needed to meet future capital requirements resulting from the impending supervision of finance companies by the Reserve Bank and changes to international accounting standards.
The proposal includes additional capital, capitalisation of undistributed profits and conversion to an investor owned company.
If the proposal is approved the company will have enough capital to meet prudential, regulatory and operational requirements.