2024-02-15 17:30:15
If a listed company does not declare dividend for two consecutive years, that company will be transferred to ‘Z’ category. At the same time, Bangladesh Securities and Exchange Commission (BSEC) has decided to change the category of a company to ‘Z’ category if it fails to hold Annual General Meeting (AGM) for two consecutive years without legal reasons.
This instruction was given in a press release signed by BSEC Chairman Professor Shibli Rubaiyat-ul-Islam on Thursday (February 15).
As mentioned in the guidelines, a company listed in the capital market will be shifted to ‘Z’ category if it fails to declare dividend for two consecutive years. Also, if the company fails to hold annual general meeting or AGM for two consecutive years, the company’s category will be changed to ‘Z’ category. However, if there is any writ petition or legal proceedings pending in court in case of non-holding of AGM, the transfer to Z category will be considered for a maximum period of 2 years.
Apart from this, BSEC has also given strict instructions on non-productive companies. Henceforth, if any company ceases operations or stops production for 6 consecutive months, it will also be shifted to ‘Z’ category. Also, if a company has negative cash flow for two consecutive years and debt is higher than paid-up capital, it will also be placed in ‘Z’ category.
As mentioned in the guidelines, if a company fails or disagrees to comply with the securities laws, regulations, notifications, orders or instructions, it will also be transferred to ‘Z’ category subject to the prior approval of the Commission.