Elephant Man wrote:Board of Directors of these firms need to employ some ingenuity (much as the one in Sasini sometimes does)...
Scrap all dividends for FY 2019 (or declare nil dividend for FY 2019) and declare an interim dividend now that would be equivalent to what they were going to ask the AGM's to approve for FY 2020.
This would only need a BoD approval - no need for AGM's. Shareholders are happy (including Treasury as the largest shareholder in Kengen, Kenya-Re etc), KRA is happy (with-holding tax). We all have some funds for fighting corona virus...
If they did this today, we would be smiling in early May...
Ama my understanding of the law is shallow? Or the directors of these companies are happy sitting on this money (of course they are still earning their fees even when working from home) while tumundu tunini continues to hustle in a declining economy...
My two cents for whatever its worth...
Kaa kwa quarantine in peace, dividend at it's time itakuja and in plenty.
The more they hold onto it,they can also use it for other ventures instead of borrowing
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle