The unclaimed dividend will go to the BSEC fund

Senior Reporter: Dividends of listed companies must be paid to the company within 30 days of approval. The regulatory body Bangladesh Securities and Exchange Commission (BSEC) has issued the directive with such obligation.

However, if the declared dividend of the company is not claimed or unpaid by anyone, it has to be transferred to the company in the fund directed by the commission after three years. The directive, signed by SEC chairman Prof Shibli Rubaiyat-ul-Islam, was issued on January 14.

The directive states that the issuing company will formulate a policy for the distribution of dividends, which the company will publish in its annual report and on its website. Companies must pay the annual or final dividend within 30 days of approval, the interim dividend within 30 days after the record date and the mutual fund dividend within 45 days of the trustee’s approval.

The cash dividend should be kept as a separate bank within 10 days of the announcement of the board of trustees. This cash dividend will be paid directly to the shareholder or unitholder’s bank through BEFTN. However, if the stock broker, merchant banker or portfolio manager asks for cash dividends for the borrower customer or debit balance, the company will send it as an integrated customer bank or as a separate bank of the merchant bank or portfolio manager.

If it is not possible to pay the cash dividend due to lack of bank account information of the shareholder or unitholder or through BEFTN, the issuing company will send a ‘cash dividend warrant’.

Expatriate entrepreneurs, directors, shareholders, unitholders and foreign portfolio investors have been asked to pay cash dividends to the issuer through security custodians. After paying the cash dividend, the company will notify the shareholders or unitholders via SMS or e-mail on their mobiles.

Even then, if companies have unpaid or unclaimed cash dividends, detailed information needs to be maintained; Which should be published in the annual report and in the marginal report under the heading ‘Unclaimed Dividend Account’. The cash dividend has to be transferred to a separate bank set up to maintain the dividend account within one year of the declaration of dividend or record date.

Similarly, within 30 days of the announcement or approval of the bonus or stock shares or the record date, the issuing company will credit the shareholder as a BO or issue a bonus share certificate. However, the issuer will maintain the suspense BO account for unpaid and unclaimed bonus shares.

However, the issuer will remind the shareholder at least three times for the purpose of providing bonus shares. The issuer will submit a compliance report to the Commission and the stock exchange within seven working days of the distribution of dividends; Which should also be published on the company’s website.

The issuer will not be able to forfeit unpaid or unclaimed cash dividends. In addition, such cash dividends have to be transferred to the designated fund after 3 years as per the instructions of the commission. The issuer will provide detailed information at the time of this transfer. However, if anyone claims a dividend after the transfer, the issuer will verify it within 15 days and recommend payment to the fund manager. The fund manager will then provide it to the claimant.

Similarly bonus shares that remain unpaid or unclaimed for more than three years have to be transferred along with detailed information as BO of the fund as directed by the Commission. However, if anyone claims a dividend after the transfer, the issuer will verify it within 15 days and recommend payment to the fund manager. The fund manager will then provide it to the claimant.

Meanwhile, the issuer BO will collect details of account, bank account, mobile number, e-mail and address for distribution of dividends among shareholders or unitholders. This information must be kept confidential.

In addition, CDBL and DP will update the shareholder or unitholder’s BO account, bank account, mobile number, e-mail and address information at least once a year.

At the same time, CDBL will provide the updated information to the issuing company for proper distribution of dividends.

Source: Daily StockBangladesh by

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