Fortune Shoes officials fined Tk 7.2cr

The Bangladesh Securities and Exchange Commission (BSEC) has fined the chairman, directors and several officials of Fortune Shoes Limited a total of Tk 7.2 crore for failing to distribute declared dividends.

The decision was taken at a commission meeting on Tuesday, according to a press release issued yesterday.

The company’s board had declared a 10 percent cash dividend and a 5 percent bonus share for the fiscal year 2022. However, it did not pay Tk 3.98 crore in cash dividends out of a total payable amount of Tk 16.25 crore.

The company also failed to pay listing fees of Tk 18.29 lakh for the period up to July 31, 2023.

The commission has directed Fortune Shoes to distribute the unpaid cash dividends and clear the listing fees within 30 days of the order.

Following the failure to pay dividends, the regulatory body decided to impose financial penalties on several individuals associated with the company for breaching securities laws.

Chairman Md Mizanur Rahman has been fined Tk 5 crore. Directors Md Amanur Rahman and Robiul Islam, former director Md Khosrul Islam, and Managing Director Roksana Rahman have each been fined Tk 50 lakh.

Chief Financial Officer Jamil Ahmed Chowdhury has been fined Tk 10 lakh, while former Company Secretary Riaz Uddin Bhuiya and current Company Secretary Md Nazmul Hossain have each been fined Tk 5 lakh.

The commission said all fines must be deposited with the BSEC within seven days.

The regulator also decided that if any listed company’s board is restructured by any primary regulatory authority, the new board members must jointly hold at least 30 percent of the company’s shares. If this condition is not met, the company will not be allowed to issue bonus shares or raise capital through rights shares or similar instruments.

In another decision, the commission allowed ‘A’ category listed banks to maintain dividend accounts with their respective banks.