The Bangladesh Securities and Exchange Commission (BSEC) on Sunday announced that directors of nine companies listed on the Dhaka Stock Exchange will face fines if they fail to distribute declared dividends within the stipulated time frame.
At the 930th board meeting, chaired by BSEC Chairman Khondoker Rashed Maqsood on Thursday, the regulator vowed to impose penalties on directors of companies that have failed to distribute dividends as per their declarations.
Directors of these companies, excluding independent directors, will be required to pay dividends to shareholders from their own private funds if the distribution is not completed by the BSEC-imposed deadline.
According to BSEC Executive Director and spokesperson Mohammad Rezaul Karim, companies must pay their overdue dividends by 15 December.
Failure to comply will result in fines levied on each director and managing director from their personal funds, in addition to requiring the distribution of the outstanding dividends.
The companies and associated penalties per director are as follows:
- Safco Spinning Mills Limited – Tk20 lakh
- Pacific Denims Limited – Tk13 lakh
- Lube-Ref (Bangladesh) Limited – Tk2.35 lakh
- Oryza Agro Industries Limited – Tk47 lakh
- Mamun Agro Products Limited – Tk13 lakh
- Krishibid Feed Limited – Tk10 lakh
- Krishibid Seed Limited – Tk10 lakh
- BD Paints Limited – Tk97 lakh
- Associated Oxygen Limited – Tk1.91 lakh