Accra:The Bangladesh Securities and Exchange Commission (BSEC) has introduced more stringent compliance requirements for listed companies regarding dividend distribution and the appointment and reappointment of independent directors. This move aims to enhance corporate governance and safeguard investors' interests.
According to Bangladesh Sangbad Sangstha, these decisions were made during the BSEC's 1033rd meeting, chaired by BSEC Chairman Masud Khan. The commission issued a press release detailing the new measures.
Under the revised instructions, companies declaring annual or final cash dividends must transfer the entire declared amount to a separate bank account at least one day before the annual general meeting for shareholder distribution. Additionally, companies must obtain a bank certificate confirming this transfer and submit the necessary documents to the BSEC with their AGM-related filings.
The BSEC has identified instances of non-compliance with existing directives and plans to enforce punitive measures against the companies involved, in line with the Securities and Exchange Ordinance and relevant regulations. The commission will also amend its guidelines to ensure mandatory maintenance of a separate bank account for dividend distribution and to prevent dividend proposals that do not meet compliance from being presented at AGMs.