BSEC fines Aftab Automobiles and Genex Infosys Tk1.43cr over unsettled dividends
Aftab Automobiles failed to fully distribute its 10% cash dividend, leaving Tk1.17 crore unpaid
The Bangladesh Securities and Exchange Commission (BSEC) has slapped a combined fine of Tk1.43 crore on directors and senior officials of Aftab Automobiles Ltd and Genex Infosys PLC for failing to distribute declared cash dividends to shareholders within the stipulated timeframe.
The decision was taken at a commission meeting held on 19 May as the market regulator steps up enforcement against listed companies that fail to comply with shareholder obligations.
According to a BSEC press release, Genex Infosys PLC declared a 3% cash dividend for the financial year ended 30 June 2024 but did not disburse the amount to investors within the legally required period.
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As a result, the regulator fined eight officials associated with the company during that fiscal year Tk1 lakh each, amounting to a total penalty of Tk8 lakh. Those penalised include the chairman, acting managing director, several directors, the chief financial officer and the company secretary.
A much larger penalty was imposed on Aftab Automobiles Ltd over a similar violation.
The company had recommended a 10% cash dividend for the same fiscal year, equivalent to Tk7.46 crore. Although it distributed Tk6.29 crore among shareholders, the remaining Tk1.17 crore was left unpaid.
The BSEC has instructed the company to clear the outstanding dividend payments within 30 days. Failing that, the commission said the penalties imposed on the company's top executives will come into effect.
Under the order, the chairman and managing director will each face fines of Tk30 lakh, while three directors will be fined Tk20 lakh each. The chief financial officer has been fined Tk10 lakh and the company secretary Tk5 lakh.
The regulator also made it clear that the fines must be paid personally by the concerned officials and cannot be settled using company funds.
In addition, any delay in paying the penalties will incur an additional fine of Tk10,000 per day.
The commission clarified that payment of fines does not absolve the companies of their responsibility to distribute the remaining dividends to shareholders, reaffirming its stance on protecting investor interests and ensuring market discipline.
