Amtex Ltd has convened a meeting of its board of directors on October 27, to discuss the consequences of withdrawing a final cash dividend of 30 percent or Rs 3 per share for June 30, announced on August 25.
According to a report sent to KSE here on Tuesday, the company has explained that the meeting will consider the impact of disapproval of cash dividend of Rs 3 per share to shareholders other than CEO, directors, their spouse and associates in the annual general meeting of the company on October 15.
Taking serious note of withdrawal of dividend by Amtex Ltd, the KSE management has asked the company to reverse its decision. In its letter addressed to Amtex Ltd, the KSE has maintained that the company has withdrawn the dividend after a lapse of 20 days from the day of announcement. This decision has eroded price of Amtex shares, falling from Rs 19.21 to Rs 15.67 per share on the last day of trading.
This decision will create a bad precedence and will destroy investors' confidence in the company and the listed companies at large. It may be noted that the board of directors had proposed a cash dividend for shareholders in its meeting on August 25, 2010.
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