By NKIRUKA NNOROM

Shareholders of Beta Glass Plc have expressed dissatisfaction over the dividend policy of the company where they are paid almost the same amount every year, describing it as unpalatable.

Speaking at the company’s 38th annual general meeting in Lagos, the shareholders said that a situation where the directors’ remuneration skyrockets on annual basis, while shareholders are given paltry returns is not acceptable and called for immediate stoppage.

The directors had declared 40 kobo dividend payout for the year ended 31st December, 2011, representing five percent increase over 38 kobo paid in the corresponding period of 2010.

Speaking on behalf of other shareholders, Mr. Igbrude Moses, explained that the company possesses the financial capacity to conveniently combine dividend with script issue, saying that where the directors do not want to dilute the shareholding structure of members by proposing bonus issue, they should at least give something reasonable as cash dividend.

“The general reserve is over N7 billion; turnover is in excess of N12 billion. Considering these numbers, it is high time you give us bonus. If you don’t want to dilute the shareholding by giving bonus, then give good dividend. After all, the money is there,” he enthused.

He further challenged the company to strengthen its sales department, advising the management to expand its operation to production of Cans instead of concentrating on manufacturing of glass bottles alone. Mr. Micheal Koo, another shareholder, specifically demanded for either N1.00 or N2.00 dividend, including bonus issue in the coming year.

“Last year, you paid us just 38 kobo and this year, you are proposing 40 kobo, whereas the chairman’s remuneration jumped to N235 million from N150 million in 2010. This is not acceptable. We will not continue to take this,” he said.

Responding, the chairman, Chief Joseph Oke, assured that they will consider the payment of more dividends at an appropriate time.