Under existing regulatory directives, listed companies proposing annual cash dividends must deposit the full declared amount into a designated dividend bank account at least one day before their AGMs.
The Bangladesh Securities and Exchange Commission (BSEC) has decided to take strict legal action against listed companies that fail to deposit their declared final cash dividends into separate bank accounts before their annual general meetings (AGMs).
The decision was taken at a commission meeting today (13 October), chaired by BSEC Chairman Masud Khan.
Under existing regulatory directives, listed companies proposing annual cash dividends must deposit the full declared amount into a designated dividend bank account at least one day before their AGMs.
They must also obtain a bank certificate confirming the deposit, duly certified by the managing director, chief financial officer and company secretary, and submit it to the stock exchanges before presenting it to shareholders at the AGM.
Noting recent instances of non-compliance, the commission decided to take punitive action against defaulting companies under the applicable securities laws.
The BSEC also decided to amend the existing directive to explicitly prohibit companies from presenting dividend proposals at AGMs without first depositing the full amount into a separate bank account and obtaining the required bank certificate.
In a parallel move to simplify administrative procedures under the Corporate Governance Code, 2018, the capital market watchdog streamlined the appointment and reappointment framework for independent directors.
The commission decided that approval for the reappointment of existing independent directors will now be granted upon receiving an updated clean Credit Information Bureau (CIB) report from Bangladesh Bank.
Additionally, if an independent director was previously granted an exemption or relaxation regarding qualification and experience criteria under condition of the Corporate Governance Code, that waiver will now automatically apply to new appointments in other listed firms or reappointments in the same company, eliminating the need to seek fresh approval.
Source: The Business Standard
Read More at: csslbd.net
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