Square Pharma distributes gifts to shareholders
Dhaka Stock Exchange has sought explanation from Square Pharmaceuticals as to why the company distributed gift items to the shareholders at its annual general meeting in violation of securities rules.
The DSE management sought the explanation in a letter to the company recently, company officials said.
DSE said video recording of 42nd AGM of Square Pharma, held in Dhaka on September 16, showed the company distributing gift items to its shareholders.
As per Securities and Exchange Commission rules, no benefit in cash or kind, other than in the form of cash dividend or stock dividend, shall be paid to the shareholders.
But, Square Pharma has violated the rules by distributing gift items to its shareholders, said a DSE senior official.
The DSE management also forwarded a copy of the letter to the stock market regulator to take necessary steps in this regard.
Square Pharma is not the only company that gives gift items or cash benefits to the attending shareholders at the AGM, there are many other listed companies who practice this.
Comments