Fan Milk Limited has announced to its shareholders that it would not be able to pay dividend for year 2019 due to COVID-19 economic challenges.
The company has noted the Ghana Stock Exchange (GSE) about the move. It said in statements that, “In the uncertain context of COVID-19 pandemic, reflecting the Company’s prudent balance sheet policy and to ensure financial flexibility, Fan Milk Limited’s Board of Directors have decided to pay no dividend for the year 2019.”
Fan Milk is not the only company not paying dividend for year 2019 as the Bank of Ghana has instructed banks in Ghana not to pay dividends to shareholders for the 2019 and 2020 financial years because of the COVID-19 pandemic and its effects.
Banks in Ghana would have, normally, declared and paid dividends, as approved by their shareholders at the Annual General Meetings (AGMs) around this time of the year, but that is not to be because of such instructions from the central bank. The Bank has also given reasons for the decision, saying, banks would be negatively impacted if they (the banks) should role out such monies.