The dividend distribution report of Northern Islami Insurance Limited, an insurance sector company listed in the capital market, has not been submitted even after the expiry of the specified period. As a result, Dhaka Stock Exchange PLC has sent a letter to the company asking about this.
According to sources, the company declared a 10 percent cash dividend for the financial year ending December 31, 2023. Northern Islami Insurance announced record date for dividend distribution on May 20 and AGM date on July 1. But more than a month after the AGM was held, the company is yet to submit the dividend distribution report to the DSE. DSE has already sent a letter to the company seeking information in this regard.
What the DSE Act says
Section 28 of the DSE Listing Regulations 2015 states that the dividend shall be distributed within 30 days of the approval of the annual general meeting. The dividend should be remitted to the investor’s bank. But in case of margin account dividend has to be remitted as BO to investor.
If a company fails to distribute the dividend within this period then the directors of that company will have to pay a fine of five thousand rupees for every day.
Source -DSEPLC
