Allow AIMS to disburse pending dividends within next 7 days
Monday, 1 November 2010
FE Report
The High Court (HC) Sunday directed the Securities and Exchange Commission (SEC) to allow the trustee of AIMS First Guaranteed Mutual Fund disburse the pending dividends and entitlements for the years 2007-08 and 2008-09 to the unit-holders of country's first private mutual fund within next seven days.
A certified copy of the judgment on the writ petition of AIMS First Mutual Fund directed the SEC to comply with the earlier verdict delivered on October 6 last in favour of AIMS.
"The spirit of the judgment clearly speaks in favour of the issuance of dividend by way of either rights or bonus by the existing mutual fund and specially whose life span is being extended," the verdict of the HC bench comprising Justice Mamnoon Rahman and Justice Syeda Afsar Jahan said.
Meanwhile, the AIMS of Bangladesh in a letter Sunday urged the SEC to advise on proceeding to disburse the pending dividend and entitlements to the unitholders in the backdrop of obtaining the certified copy of the HC judgment.
"The court while exercising the power conferred under article 102 of the constitution cannot allow or approve the declaration of dividend by way of stock bonus or rights. This court rather can only direct the authority to reconsider the issue in accordance with law," the 35-page judgment added.
In its observation on the tenure of close-end fund, the verdict said it is the duty of the Trustee Board to decide whether to increase the fund or not.
"SEC being the regulator and watchdog of the stock market must enjoy a power in all aspect and the very purpose of such power is only to protect the stock market and its investors. Any decision of the SEC is to be based upon law and for the betterment of the market".
The verdict also said SEC while allowing or refusing approval must follow and consider the detailed observations made the HC division bench regarding the issue.
On the earlier hearing of AIMs, Barrister Rokon Uddin Mahmud along with Barrister Fazle Noor Taposh and Abul Kalam Azad appeared for the petitioner. Senior Advocate Mahmudul Islam had moved on behalf of the SEC.
Earlier, a lawyer on behalf of the investors filed a writ petition challenging the securities regulator's rejection of rights offer announced by the trustee of the Fund.
The trustee of the mutual fund has announced 70 per cent stock dividend for 2007-08 and 2008-09 and a 130 per cent rights entitlement.
The High Court (HC) Sunday directed the Securities and Exchange Commission (SEC) to allow the trustee of AIMS First Guaranteed Mutual Fund disburse the pending dividends and entitlements for the years 2007-08 and 2008-09 to the unit-holders of country's first private mutual fund within next seven days.
A certified copy of the judgment on the writ petition of AIMS First Mutual Fund directed the SEC to comply with the earlier verdict delivered on October 6 last in favour of AIMS.
"The spirit of the judgment clearly speaks in favour of the issuance of dividend by way of either rights or bonus by the existing mutual fund and specially whose life span is being extended," the verdict of the HC bench comprising Justice Mamnoon Rahman and Justice Syeda Afsar Jahan said.
Meanwhile, the AIMS of Bangladesh in a letter Sunday urged the SEC to advise on proceeding to disburse the pending dividend and entitlements to the unitholders in the backdrop of obtaining the certified copy of the HC judgment.
"The court while exercising the power conferred under article 102 of the constitution cannot allow or approve the declaration of dividend by way of stock bonus or rights. This court rather can only direct the authority to reconsider the issue in accordance with law," the 35-page judgment added.
In its observation on the tenure of close-end fund, the verdict said it is the duty of the Trustee Board to decide whether to increase the fund or not.
"SEC being the regulator and watchdog of the stock market must enjoy a power in all aspect and the very purpose of such power is only to protect the stock market and its investors. Any decision of the SEC is to be based upon law and for the betterment of the market".
The verdict also said SEC while allowing or refusing approval must follow and consider the detailed observations made the HC division bench regarding the issue.
On the earlier hearing of AIMs, Barrister Rokon Uddin Mahmud along with Barrister Fazle Noor Taposh and Abul Kalam Azad appeared for the petitioner. Senior Advocate Mahmudul Islam had moved on behalf of the SEC.
Earlier, a lawyer on behalf of the investors filed a writ petition challenging the securities regulator's rejection of rights offer announced by the trustee of the Fund.
The trustee of the mutual fund has announced 70 per cent stock dividend for 2007-08 and 2008-09 and a 130 per cent rights entitlement.