ISAN Coordinator, Mr. Sunny Nwosu
Shareholders of Courteville Business Solutions Plc, has called on the board and management of the company to pay them higher dividends.
Speaking on behalf of his colleagues at the company’s Annual General Meeting (AGM) in Lagos, National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Sunny Nwosu, said Courteville had consistently rewarded investors with dividends but called for an increase in the value of the dividends going forward.
“I am happy about their policy that something goes to the shareholders. But I am beginning to be very uncomfortable about it because it’s becoming too conservative. Extra one kobo every year, they should try and increase it the more” he said.
Apart from dividends, the shareholders urged the company to reward them with bonus shares.
Responding to the shareholders’ requests, Group Managing Director of Courteville, Mr. Bola Akindele, said conservatism had helped the company achieve whatever they had achieved so far.
According to him, the company has not been too extravagant in spending money in getting the business done.
“We have just tried to maintain the status of being reasonable in the way we conduct our business. We will pay dividend according to the profit made by the company.We will also consider the position of the company’s balance sheet at the end of each financial year before proposing any dividend,” he said.
Akindele further affirmed that the company would not borrow to pay dividend but rather do so within the profit available to it. He noted that with time enhanced dividends would be paid considering the company’s performance and as the country’s economic situation improves.
The directors recommended a dividend of five kobo dividend per share for the year ended December 31, 2011.
Courteville posted a profit after tax of N245.352 million in year 2011, up from N179.427 million recorded in year 2010.