BSEC directs GNFL directors to hold 30% stake
BI Report || BusinessInsider
Generation Next Fashions Limited logo.
The Bangladesh Securities and Exchange Commission (BSEC) has directed the entrepreneurs/directors of Generation Next Fashions Limited (GNFL) to collectively hold 30 percent shares within three months.
At the same time, the commission has ordered GNFL to submit a progress report on the implementation of the directive and to ensure good governance including conducting business activities as per the directive.
Currently, entrepreneurs/directors of GNFL own 13.82 percent of the company’s stocks.
According to BSEC officials, a letter regarding this has been sent to the board of directors of Generation Next Fashions recently.
On November 3, a meeting was held with BSEC with the members of the board of directors and senior officials of Generation Next Fashions at the Securities Commission building.
The commission has taken these decisions in view of the discussion between the two sides in the meeting.
According to this letter, if the company fails to implement the directive, the commission will take necessary actions as per law, which may include the introduction of independent directors into the company and the reorganisation of its board.
The letter also mentioned that in the larger interest of the investors, the board of directors of the company may revise the dividend declared for the financial year 2021-22 or approve the dividend declared.
In view of this decision, the listing category of the company may be upgraded or improved.
It may be noted that the company has not paid dividends to its shareholders despite making a profit in the financial year ended on June 30, 2022.
So, BSEC summoned the company’s board of directors and senior officials to explain the reason. At the same time, the company was also directed to submit the necessary documents to the BSEC.
Generation Next Fashions was listed in the textile sector of the capital market in 2012. The company is currently downgraded from ‘B’ to ‘Z’ category due to the non-payment of dividend to shareholders in the last financial year.
