UCB investors blame shareholders' greed for mkt manipulation
Wednesday, 15 October 2008
FE Report
A section of aggrieved shareholders of the United Commercial Bank (UCB) Limited demanded quick settlement of cases related to pending annual general meetings (AGMs) of the bank as transaction of shares worth billions remained suspended for long.
The demand was made at a press conference held Dhaka Reporters' Unity (DRU) in the city Tuesday where a number of shareholders including Tariqul Islam, M Nazimullah, M Shamsul Alam, Amal Krishno Shah and Imtiauddin Ahmed were present.
They alleged that the directors earned billions of money by deliberately manipulating the market by selling their holdings when share prices rise and buying when those drop, thus deceiving the general investors.
"We, the general investors, are the victims of greed of the directors and about Tk 240 billion remains stuck because of conspiracy hatched by the management of the bank, throwing us in deep financial trouble," said Tariqul Islam, a shareholder.
He said, the shareholders in the last several years purchased UCB shares believing that they would be entitled to stock dividends of the previous years but they are yet to get their due bonus and rights offer because of pending cases.
As per court direction, the UCB board fixed July 30 , 2008 as the record date for entitlement of dividends in the form of 90 per cent and 50 per cent bonus shares on its paid up capital of Tk 299.2 million. This is a combined offer for the years 2003, 2004, 2005 and 2006.
According to this announcement, a number of investors bought the shares at the prices between Tk 7000 and Tk 7999. Under this circumstances, three shareholders, who did not get dividends of 1998, 1999, 2000, 2001 and 2002, filed the cases demanding their entitlement for dividends, according to the shareholders
Subsequently, the UCB again suspended the record date because of injunction by the appellate division in August last, said Tariqul.
The UCB failed to pay dividends as it could not hold pending AGMs in the last 10 years since 1997 because of cases filed by some group of investors.
In February last year, the AGM of UCB ended in a fiasco at Sheraton Hotel when aggrieved shareholders resorted to fist-fighting and chased away the directors of the bank.
Trading of the UCB, a Z-category issue, shares remained suspended since August last for an indefinite period because of its share prices wild movement in both the bourses - Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).
Before halt the UCB shares were being traded at Tk 3190 per share.
A section of aggrieved shareholders of the United Commercial Bank (UCB) Limited demanded quick settlement of cases related to pending annual general meetings (AGMs) of the bank as transaction of shares worth billions remained suspended for long.
The demand was made at a press conference held Dhaka Reporters' Unity (DRU) in the city Tuesday where a number of shareholders including Tariqul Islam, M Nazimullah, M Shamsul Alam, Amal Krishno Shah and Imtiauddin Ahmed were present.
They alleged that the directors earned billions of money by deliberately manipulating the market by selling their holdings when share prices rise and buying when those drop, thus deceiving the general investors.
"We, the general investors, are the victims of greed of the directors and about Tk 240 billion remains stuck because of conspiracy hatched by the management of the bank, throwing us in deep financial trouble," said Tariqul Islam, a shareholder.
He said, the shareholders in the last several years purchased UCB shares believing that they would be entitled to stock dividends of the previous years but they are yet to get their due bonus and rights offer because of pending cases.
As per court direction, the UCB board fixed July 30 , 2008 as the record date for entitlement of dividends in the form of 90 per cent and 50 per cent bonus shares on its paid up capital of Tk 299.2 million. This is a combined offer for the years 2003, 2004, 2005 and 2006.
According to this announcement, a number of investors bought the shares at the prices between Tk 7000 and Tk 7999. Under this circumstances, three shareholders, who did not get dividends of 1998, 1999, 2000, 2001 and 2002, filed the cases demanding their entitlement for dividends, according to the shareholders
Subsequently, the UCB again suspended the record date because of injunction by the appellate division in August last, said Tariqul.
The UCB failed to pay dividends as it could not hold pending AGMs in the last 10 years since 1997 because of cases filed by some group of investors.
In February last year, the AGM of UCB ended in a fiasco at Sheraton Hotel when aggrieved shareholders resorted to fist-fighting and chased away the directors of the bank.
Trading of the UCB, a Z-category issue, shares remained suspended since August last for an indefinite period because of its share prices wild movement in both the bourses - Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).
Before halt the UCB shares were being traded at Tk 3190 per share.