Directors of nine DSE-listed companies risk fines for delayed dividend payments

The Bangladesh Securities and Exchange Commission (BSEC) has 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 timeframe.

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 – Tk 2.0 million, Pacific Denims Limited – Tk 1.3 million, Lube-Ref (Bangladesh) Limited – Tk 235,000, Oryza Agro Industries Limited – Tk 4.7 million, Mamun Agro Products Limited – Tk 1.3 million, Krishibid Feed Limited – Tk 1.0 million, Krishibid Seed Limited – Tk 1.0 million, BD Paints Limited – Tk 9.7 million, Associated Oxygen Limited – Tk 191,000.

The BSEC directive aims to protect investors' interests and uphold the integrity of Bangladesh’s capital markets.