Familytex (BD) Limited, which was last week served a show-cause notice by the BSEC on charge of violating listing condition by making a decision on dividend declaration before listing, on Sunday indicated that the Dhaka and Chittagong stock exchanges had misinterpreted
the company decision on dividend.A senior DSE official, however, ruled out the charge saying that the company did not inform it (DSE) of any correction when a news regarding dividend declaration was published on the DSE web site.
Familytex in its reply said it had only approved the draft audited financial statement of the company for the year ended on December 31, 2012. But its board of directors did not make any decision regarding dividend in a board meeting.
It also said that the company had only sought advice from the Dhaka and Chittagong stock exchanges regarding dividend declaration on July 23.
‘We didn’t hold any board meeting regarding dividend declaration after receiving reply from the DSE and the CSE,’ it also said.
‘If the DSE news regarding the dividend of Familytex was not presented properly, it should have requested the DSE for a correction immediately,’ a DSE official told New Age on Monday.
‘According to the Company Act, having agenda regarding dividend declaration on the annual general meeting is a must for all company. The company has already held its AGM on August 4,’ he said.
‘The company got one-and-a-half months after the listing with the DSE to have another board meeting to approve dividend. But it did not make any decision,’ he said.
CSE officials also blamed the company for the confusion over the dividend.
The BSEC last week issued the show-cause notice to Familytex following a DSE web post that the company had been downgraded to ‘Z’ category from ‘N’ category on charge of its failure to issue any dividend for the year ended on December 31, 2012.
The BSEC show-cause notice said that the company had made a decision regarding dividend on April 29 before listing with the bourse on July 18.
The commission also asked the Familytex to reply within three working days.
The BSEC on January 22 approved initial public offering of Familytex setting condition not to make any decision regarding dividend for the shareholders’ before listing with the stock exchanges.
A DSE web post, however, on the day of listing on June 18 said that the board of directors of Familytex decided not to issue any dividend for its shareholders for the year ended on December 31, 2012.
Familytex raised Tk 34 crore by offloading 3.40 crore shares at an issue price of Tk 10 per shares.
According to the financial statement of the company as of December 30, 2011, the earning per share of the company was Tk 0.92 while net asset value per share was Tk 11.82.
As per the half-yearly report of the company published on July 31, the company reported net profit after tax of Tk 45.35 crore with an EPS (earning per share) of Tk 4.13.
-With New Age input
