Engr. Md. Shariful Islam
Managing Director
Beach Hatchery Ltd.
TMC Building (8th
Floor)
52, New Eskaton
Road
Dear
Sir:
Subject: Non-compliance
of securities laws - WARNING
Reference is made to the notice
for hearing SEC/Enforcement/189/2003-193 dated September 20, 2003 and hearing
conducted on September 28, 2003.
The Commission issued show-cause
notice SEC/Enforcement/189/2003-174 dated September 02, 2003 in terms of
certain activities of the issuer and its managing director as mentioned in the
show-cause notice under reference, among others, failure to comply with the
condition of the prospectus regarding payment of 15% dividend i. e. Tk. 1.50 per share of Tk. 10.00 each to the preference shareholders of the issuer
as well as the provisions of the securities laws (CCI’s
Notification No. SRO 385-LAW/91 dated 15.12.1991; being the order made under
section 2G of the Securities and Exchange Ordinance, 1969) regarding payment of
dividend and also failure to honour the dividend cheques of the preference shareholders on the ground of
shortage of fund.
Mr. Engr.
Md. Shariful Islam, Managing Director of Beach
Hatchery Limited in response to the Commission’s show-cause notice under
reference by letter BHL/HO/2003-453 dated September 08, 2003, read with letter
BHL/HO/2003-454 dated September 11, 2003 acknowledged the Commission’s
allegation made regarding non-compliance of securities laws and sought apology.
The persons present at the hearing also sought
apology for the issuer’s failure to comply with the relevant provisions of
securities laws and assured these would not happen again in future. At a later
stage the issuer furnished relevant papers including the authenticated bank
statement up to 25.09.2003 commensurate with the hearing which reveals that out
of total amount of dividend worth Tk. 114.00 lac, total payment made as on 04.10.2003 stood at Tk. 1,09,70,299.00 including Tk.
4,24,815.00 as income tax deducted at source.
The Commission, after considering
the submissions of beg to be condoned and assurance given for compliance of
securities related laws in future by Mr. Engr. Md. Shariful Islam, Managing Director of Beach Hatchery Limited by his letters
under references and by the persons present at the time of hearing, has decided
to dispose of the proceedings against the issuer by placing on record the Commission’s dissatisfaction on the default made
and with a warning to comply with all securities related laws in future.
Deputy Director