Information reaching us now is that there is quarrel between the shareholders and the Board of Directors of Nigerian Breweries Plc, over 21 billion naira dividend
Information obtained from a cross section of shareholders, confirmed that they have resolved to vote against the motion when it comes up for approval at the Annual General Meeting, AGM.
According to the shareholders, the case is the table of Securities and Exchange Commission, SEC and the Nigerian Stock Exchange, NSE, for intervention.
However, investigations show that the directors would still push the proposal successfully given their majority stake in the event the face off leads to a pool, but It is not yet clear if the regulatory authorities are stepping in to ease the tension.
Information made available states that the Board of Directors had proposed N20.5 billion as final dividend, amounting to cash dividend of N2.58 per share, for the year ended December 2016, but the company later said it will seek for the shareholders’ approval at the AGM to convert the cash dividend to scrip issue.
According to the company, the conversion will help it to consolidate on its balance sheet. But speaking Journalists, the shareholders insisted that dividend payment is their right and must be paid once it is declared.
Speaking Journalists, the former National Coordinator, Independent Shareholders Association of Nigeria, ISAN, Sir Sunny Nwosu opined that the move is a ploy by the directors to increase their stake in the company as a first step towards eventual exit from the Exchange.
Sir Nwosu said “We are totally against it because it is taking undue advantage of Nigerians. We are all aware that we are in recession and everybody needs every kobo; the directors do not need the dividend and, therefore, they want to use the scrip issue to increase their holding in the company. Whether it is one per cent or 001 per cent that the scrip issue will add to us as shareholders, it is not desirable to us. What they are saying is that they could not transfer their dividend. But they have been transferring their dividend for 70 years, so, why don’t they bear with us at this time of difficulty. It would have been better if they had not declared the dividend and allow the interim dividend to remain as the final dividend than declaring dividend and at the same time complaining that they want to plough back the money”
