“No dividend shall be paid by a Company otherwise than out of profit of the Company,” said Al-Abbas Cement quoting Section 249 of the Companies Ordinance, 1984, in a reply Karachi Stock Exchange (KSE) show cause notice. The Company paid last dividend on June 30, 2004.
“We assure you that once Company earns profit; the Board of Director will recommend the dividend or Bonus as the case may be,” said the notification signed by Zuhair Abbas, Chief Financial Officer, Al-Abbas Cement. Maple Leaf Cement replied to KSE, “...the creditors have made a condition for restructuring that no dividend or payouts can be made without prior approval of Sukkuk lenders till the long term debts are repaid.”
