B Mirrror Report : Monospool Bangladesh, a company listed on the stock exchange, is set to face penalties for violating dividend distribution regulations by declaring more bonus shares than cash dividends for the fiscal year 2024–25. As a result, the company will have to pay an additional income tax of around Tk 5.1 million (51 lakh).

According to the company’s financial report, Monospool Bangladesh earned a net profit of Tk 128.2 million (12 crore 82 lakh) during the 2024–25 fiscal year, equivalent to Tk 3.76 per share. Out of this, the company’s board decided to distribute 5% (Tk 17.1 million) as cash dividends and 15% (Tk 51.2 million) as bonus shares, while retaining Tk 59.9 million (47%) as retained earnings.

However, under the 2018–19 approved national budget, companies listed on the stock exchange are not permitted to issue bonus shares exceeding the amount of cash dividends in any fiscal year. If a company violates this rule, a 10% tax is imposed on the excess bonus amount.

Based on this regulation, Monospool Bangladesh will now have to pay a 10% tax on Tk 51.2 million worth of bonus shares, resulting in a Tk 5.1 million tax penalty.

Monospool Bangladesh, which was listed on the stock exchange in 1989, currently has a paid-up capital of Tk 341.1 million (34 crore 11 lakh). As of Saturday, November 1, the company’s share price stood at Tk 101.40.

This penalty serves as a reminder for listed companies to adhere strictly to dividend distribution guidelines to avoid financial and regulatory repercussions.