DIVIDEND DISTRIBUTION POLICY OF  PRAGATI INSURANCE LTD

 

Pragati Insurance Ltd. has formulated a dividend distribution policy in line with the Directive No. BSEC/CMRRCD/2021-386/03 dated January 14, 2021 of the Bangladesh Securities and Exchange Commission (BSEC).

 

Objective:

The objective of this Policy is to establish the parameters to be considered by the Board of Directors of the Company before declaring or recommending dividend. The Company has an uninterrupted dividend payout since listing. In future, the Company would endeavour to pay sustainable dividend keeping in view of the Company’s policy of meeting the long-term growth objectives from internal cash accruals.

 

Disclosure on Dividend Distribution:

Pragati Insurance Ltd. pay off the dividend to the securities holder within the stipulated time after declaration or approval and submit a compliance report to the Exchange and to the Commission in respect of dividend payment within 7 (seven) working days.

Pragati Insurance Ltd.(PIL) specifically and clearly mentions the reasons for partial or non-distribution of profit as dividend in its resolutions of every annual general meeting. With a view to inform all public subscribers, we sent short messages (SMS) to all our valued shareholders after disbursement of dividend through Bangladesh Electronic Funds Transfer Network (BEFTN). If any deviation is found, we directly contact and resolve the problem.

Same time we send a few printed Dividend warrant for the same year to the shareholders by post to their address and change of any warrant is relevant delivered, it is deposited to their respective bank account.

 

Distribution Time:

Pragati Insurance Ltd. shall pay off the annual or final dividend to the entitled shareholder within the given time after approval any declaration. Provided that interim dividend shall be paid off to the entitled shareholder within the stipulated time of record date.

 

Factor being considered for Dividend:

The form, frequency and amount of future dividends shall be at the discretion of our Board and subject to the approval of our shareholders and will depend on various factors including but not limited to:

1. Profit after tax (PAT) earned during the financial year.

2. Cash flows.

3. Liquidity

4. Capital requirements/adequacy of capital.

5. Adequate cash utilization opportunities.

6. Future business expansion plans.

7. Retained earnings and considered with expected return from the business.

8. Applicable taxes on dividend in hands of recipients including dividend distribution tax, where applicable.

 

Amendments:

The Board may, from time to time, amend this Policy to the extent required due to change in applicable laws/BSEC’s/DSE’s regulations or as deemed fit on a review.

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