Regulatory Alerts2018-05-09
Added · Updated
The Companies (Distribution of Dividend) Regulations, 2017
These regulations mandate that companies pay cash dividends within ten working days of declaration or the start of book closure, with listed companies required to initiate book closure within fifteen days of board approval. They establish specific payment mechanisms, requiring non-listed companies to obtain shareholder mandates for direct bank transfers, warrants, or cheques, while listed companies must utilize paying agents and central depositories for electronic distribution. The rules also define circumstances under which dividend payments may be withheld or deferred, such as missing identification or bank details, and outline the procedures for notifying shareholders and reporting withheld amounts to the Securities and Exchange Commission of Pakistan.