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.
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.