Stocks
BSEC Mandates Physical Presence for Corporate Accountability at Shareholder Meetings
To uphold accountability to shareholders, the stock market regulator has stipulated that a minimum of 25% of board members, including the chairman and managing director, must be physically present at the general meeting of a listed company.
The Bangladesh Securities and Exchange Commission (BSEC) took this directive on December 28 of the preceding year, mandating listed firms to conduct their annual general meetings (AGMs) and extraordinary general meetings (EGMs) with the physical presence of shareholders. The decision was prompted by the observation that a majority of companies were exclusively conducting their general meetings through digital platforms, contrary to BSEC directives, as per sources within the BSEC.
Rezaul Karim, the spokesperson for BSEC, emphasized, “In accordance with commission rules, companies are obligated to conduct general meetings both physically and online. Shareholders desiring physical attendance should have the option, and those opting for online participation should be accommodated. Ensuring corporate governance, shareholders must be provided the opportunity to express their views during the AGM. Companies failing to adhere to BSEC instructions will face necessary actions.”
On March 10, 2021, BSEC issued guidelines for AGMs and EGMs, introducing a hybrid system allowing listed firms to conduct meetings with both physical and online participation of directors and shareholders.
Sources within BSEC reveal concerns about companies neglecting the hybrid system due to a lack of supervision by stock exchanges. The commission is poised to inquire into the negligence of both the Dhaka and Chattogram bourses.
Insiders suggest that some companies exploit the opportunity to hold meetings online as a cover-up for irregularities. The avoidance of in-person meetings helps sidestep shareholder inquiries, particularly for companies accused of manipulations in the capital market.
In 2020, amidst the COVID-19 outbreak, the regulatory body had initially ordered companies to organize any type of meeting, including AGM and EGM, using online platforms. Anonymously, a member of the Bangladesh Association of Publicly Listed Companies highlighted the ease of shareholder participation and cost-effectiveness with digital platforms. He noted that companies sometimes pass agendas without allowing shareholder views via digital platforms, asserting that physical meetings prevent such avoidance.
Dhaka Stock Market DSE, Bourse on the second working day of the week, 30th September, ended with a negative performance in Indices and a hike in Turnover from the previous working session. This information is known from DSE sources.
503 crore 90 lakh taka shares were traded on this day. 22 crore 58 lakh more tradings were done in DSE today compared to the previous workday, 29th September, Shares worth Tk 481 crores 31 lakh shares were traded last time, Sunday.
The benchmark DSEX lost 33.61 points or 5,624 The Shariah-based index DSES dropped 7.36 point or 1,263 and the blue-chip index DS30 decreased by 9.57 points or 2,053.
Of the issues traded, 72 advanced, 299 declined and 25 remained unchanged.
Shahjibazar Power Company Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.76 percent. On this day, the share was last traded at Tk 45.00 paisa.
Dhaka Electric Supply Company Limited ranked top loser on the DSE, the share price dropped by Tk 1.80 paisa or 7.56 percent. On this day, the share was last traded at Tk 22.00 paisa.
DSE topped on trade is Pragati Life Insurance Limited 25 crore 35 lakh takas of company shares have been traded.
A total of 27 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 50 lakh 42 thousand 956 shares of the companies were traded. The financial value of which is 65 crore 60 lakh taka
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
