Dividend and Dividend Distribution Policy

Dividend and Dividend Distribution Policy

This policy will be applicable to Nitol Insurance Company Limited (NICL). This policy is for payment of dividend to shareholders of the company.

The Company pays dividends in BDT. Future dividends will depend on a variety of factors including NICL’s earnings, financial condition, applicable capital and solvency requirements, prevailing financial market conditions, and the general economic environment. Proposals for dividend payments are made at the discretion of the Board of Directors and are submitted for approval to the Shareholders’ Meeting (AGM). The dividend proposed by the Board of Directors in any particular year may vary considerably depending on a variety of factors (as noted above) which may have an impact on this target from one year to another. In assessing the dividend to be paid in any given year, Management tries to strike the appropriate balance between (i) prudent capital management, (ii) reinvestment of previous results to support business development, and (iii) an attractive dividend for shareholders.

The Board of Directors recommend/declare and distribute dividend as per the provisions of the Companies Act, 1994, the Articles of Association of the Company, and BSEC’s guidelines/ notifications.

  • Interim dividend will be paid to the entitled shareholder within 30 days of the record date.
  • The final dividend will be paid within 30 days of approval of shareholders at the Annual General Meeting.
  • The Company shall ensure that the amount of cash dividend shall be deposited in a scheduled bank in a separate account within the stipulated time specified by the regulators and paid directly to the bank account of an entitled shareholder as available in the BO account maintained with Depository Participant (DP) or provided by the shareholder in paper form through Bangladesh Electronic Funds Transfer Network (BEFTN). In the case of a margin loan, cash dividend will be paid off to the Consolidated Customers’ Bank Account (CCBA) as provided by the merchant banker or portfolio manager within the stipulated time prescribed by the Company.
  • Undistributed/unclaimed cash dividend shall be deposited in a scheduled bank in a separate account and dividend including interest thereon for a period of 3 years from the date of declaration or approval shall be transferred to the fund as directed or prescribed by BSEC.
  • The Company shall credit stock dividend or bonus shares directly to the BO account or issue a bonus share certificate of the entitled shareholder, as applicable, within 30 days of declaration or approval, as the case may be, subject to clearance of the Dhaka Stock Exchange Ltd and Central Depository Bangladesh Ltd (CDBL).
  • Undistributed bonus shares shall be held in a Suspense BO account under Block Module with CDBL and unclaimed bonus shares for a period of 3 years from the date of declaration or approval shall be transferred in dematerialized form to the BO account as directed or prescribed by BSEC.
  • The company shall submit a compliance report to the Bangladesh Securities and Exchange Commission (BSEC) in a specific format, within 7 (seven) working days of completion of dividend distribution. Provided that the company will also publish the compliance report in its website.
  • The company shall not forfeit any unclaimed cash dividend or stock dividend till the claim becomes barred by the law of land in force.

The Board shall review this policy on an annual basis or as and when required by the law. The Board is authorized to change/amend this policy from time to time at its sole discretion and/or in pursuance of any amendments made in the Companies Act, 1994 and BSEC’s Regulations/Notification or Guidelines, etc. In the event of any conflict between the provisions of this Policy and of the Companies Act, 1994 or Listing Regulations or BSEC’s guidelines or any other statutory enactments, rules, the provisions of such Act or Listing Regulations or statutory enactments, or rules shall prevail over this Policy. Any subsequent amendment/modification in the Listing Regulations, Act, and/or applicable laws in this regard shall automatically apply to this Policy. The Company shall make appropriate disclosures as required under the BSEC’s guideline/directive dated 14 January 2021.