Almost after a decade, the trend of issuance of right shares has re-started by listed companies. The purpose of right subscription is described as expansion. Some at these companies like M/s Telecard, TRG, Nimir Ind.
Chemicals and Bosicor never paid even a single penny to their shareholders in the shape of dividends or bonus, but have issued right shares. At the time of getting approval for right shares, these companies projected good results and dividends for the future, but after getting the money of right shares from investors, they failed to comply on to their own projections.
It is a tragedy that the concerned law-making authorities are closing their eyes on this drama. The directors enjoy the billions of poor investors. It creates a most disappointing situation when the shares value drops drastically from its ex--right value.
Some of the companies do not have any assets in Pakistan. The concerned authorities are requested not to allow the issuance of any right share, unless the companies have a good track record of earnings and pay out to their shareholders. Personal guarantee from directors should also be taken in respect of good results and dividends in the future according to the projections.
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