Nepal Telecom, 91.5 percent owned by the government, 5 percent by employees and 3.5 percent by the public, has decided to propose a 46 percent dividend to the shareholders. With the nod from Finance ministry, the NT board will propose the dividend in the sixth AGM. The dividend is 2 percent less than that of 48 percent the previous year.
The company made a profit of 11 billion 310 million in the last Fiscal year, whereas the net profit amounts to 8 billion 600 million till the month of Chaitra and the profit to be around 12 billion for this year. We can share more information when NT shares its Annual report on the AGM day. As Ntc rapidly expands their mobile service around the country, their profit can also surge for the 2071/2072. The profit increase directly increases the dividend amount.
The board has also decided to hold the election of a board member representing the public shares on Ashad 24, 2071. NT has already decided to bring forth the representation of Employee in the executive board through CBA. But the process is in limbo as some unions fear of losing their bargaining ground with the CBA elections.
Nepal Telecom has the highest market capitalization in the Nepalese share market. They used to have a big demand in the market.
Government owns the Nepal Telecom, although being a company with 91.5 percent share. Some of the shares are provided to the public and some to the Nepal Telecom employees. So, the major decision maker for the company is the Government itself. Though their board of directors is the supreme decision maker for the company, there are a lot of interferences. The Chairman of the board is Secretary of Minister of Information and Communication and other members from Government employees like Sub Secretaries. There is also no fix terms for the board of directors as they are frequently transferred from one Ministry or office to another.
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