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Out of the 19 listed companies with Royal Securities Exchange of Bhutan Limited (RSEBL), 7 of them have declared dividends and issued bonus.
Dividend is a distribution of profits by a corporation to its shareholders which can be issued in terms of cash payments or stocks.
Despite financial institutions making profits in 2021, the Royal Monetary Authority (RMA) had instructed the financial institutions (FIs) to not declare dividends, so as to keep their profits as reserve to be used for operation should the institutions face any unexpected troubles.
Bhutan Ferro Alloys Limited (BFAL) has declared a 350 percent dividend for 2022 and the record date for the issuance was set on 17 March 2023.
Penden Cement Authority Limited (PCAL) also declared to issue bonus shares at the ratio of 1:10 that is for every 10-equity held, 1 bonus share is given and the record was set on 21 March 2023 with its ex-date set on 20 March 2023.
State Trading Corporation Limited (STCL) declared a 25 percent dividend and the record date has been set on 5 April.
Bhutan Carbide and Chemicals Limited (BCCL) has declared 110 percent dividend and the record date has not yet been set.
Currently, financial institutions Bhutan National Bank (BNB), T-Bank, Bhutan Insurance Limited (BIL) has announced dividends for 2022.
T-Bank limited declared a 9 percent dividend with bonus share in the ratio of 1:10.
Bhutan National Bank Limited (BNB) declared a dividend of 13.8 percent and bonus issue at the ratio of 1:4.
Bhutan Insurance Limited (BIL) declared 20 percent dividend and 1:1 bonus.
As other financial institutions declared dividends, people have been asking about dividends declaration from Royal Insurance Corporation of Bhutan Limited (RICBL).
According to an official from RSEBL, to declare any corporate actions like dividend, bonus and rights shares, it has to be endorsed in the Annual General Meeting (AGM). According to the Companies Act of Kingdom of Bhutan, AGM should be convened on or before 30 April.
“To declare dividends, it has to be endorsed in the AGM. Say suppose, if a company has an agenda for dividend to its shareholders, the company will firstly, propose it in a board meeting. If the board decides to approve the agenda, then it will be put up in the AGM. In the AGM, to endorse the agenda, 75 percent of votes will be required to endorse the dividend proposal. The dividends will be credited to the shareholders’ bank accounts as per the record date. However, for the financial institutions, they have another step which is to submit to RMA for approval after the endorsement from AGM.”
The AGM for Druk PNB is set to be held on 31 March, Bhutan Tourism Corporation Limited (BTCL) is set to be held on 7 April, GIC Bhutan Reinsurance Corporation Limited (GBRL) is set to be held on 12 April, Druk Wang Alloys Limited (DWAL) is set to be held on 19 April, Sherza Ventures Limited (SVL) is on 29th April and RICBL on 21st April.
Whereas the AGM dates for Bhutan Polymers Company Limited (BPCL), Kuensel Corporation Limited (KCL) and Druk Ferro Alloys Limited (DFAL) has not yet been confirmed.
As for Bhutan Board Products Limited (BBPL), the AGM was held on 28 March, however, they did not declare any dividends. Similarly, Dungsam Polymers did not declare any dividends.
As for Druk Satair Corporation Limited, during its special annual general meeting, they passed a resolution to wind up the company.
