The dividend policy outlines the amount of cash that will be distributed to the shareholders every year as a dividend from the after-tax profit of the company. The dividend policy is based on two main factors. The first is whether to pay dividends to shareholders, and the second is whether to keep profits to reinvest them in the company's further development. The topline statement of the policy is that the Board of Directors proposes a cash pay-out of more than 50% of the company's after-tax profit every year. The dividend is to be recommended and approved as per applicable laws and regulatory directives issued from time to time by the Bangladesh Securities and Exchange Commission.
Entitlement of Dividend:
Shareholders whose names shall appear in the Members Register of the Company or in the Depository Register of CDBL on the ‘Record Date’ of the respective year’s AGM will receive the entitled dividend.
Process of Distribution of Cash Dividend:
The cash dividend shall be paid directly to the bank account within 15 days and not more than 30 (thirty) days of the date of approval by the shareholders in the AGM and the date of Board approval in the case of an interim dividend, subject to compliance with BSEC or Bangladesh Bank or other regulatory authority circulars/directives from time to time.
Procedure of stock dividend distribution:
The stock dividend will be credited within 30 (thirty) days of approval, subject to regulatory clearance.
Process for settling unpaid dividends:
Unpaid or unclaimed cash dividends for less than three years from the declaration date shall be paid to shareholders upon application and disbursed within the time period specified. In case of the cash and stock dividend for more than three years of the declaration date shall be settled as per the instructions of the BSEC or other regulatory authority from time to time.
Tax will be deducted at source as per applicable tax laws.