The board of the company declared 13% cash and 2% stock dividend based on the actuary’s recommendation
Rupali Life Insurance Company Limited has recommended 13% cash and 2% stock dividend for the year ended on December 31, 2020.
In a filing with Dhaka Stock Exchange on Monday, the company said it declared bonus shares because the consulting actuary of the company has assessed the valuation surplus and recommended a 15% dividend for the year 2020.
The board of the company declared 13% cash and 2% stock dividend based on the actuary’s recommendation. The stock dividend has been declared considering Section 21 of Insurance Act 2010 to attain the minimum paid-up capital Tk30 crore out of that valuation surplus which is the accumulated profit of the company.
It also said that the bonus shares are not declared from share premium or capital reserve or revaluation reserve or any unrealized gain.
It was not declared out of profit earned prior to incorporation of the company or through reducing the paid-up capital or through doing anything so that the post-dividend retained earnings become negative or a debit balance.
Rupali Life Insurance also said that it shall use the amount of the declared stock dividend instead of cash to invest in FDR, Bond, and/or stock market to enhance the future return on investment.
The annual general meeting of the company, where the dividends will be approved, is scheduled to take place on October 28 via a digital platform.
Earlier in the year 2019, the insurance company offered a 12% cash dividend to its shareholders. During Monday’s trade, the closing price for each of its shares was Tk77.7.
