PRINCIPLE EIGHT – RELATIONS WITH SHAREHOLDERS AND OTHER KEY STAKEHOLDERS
ABL’s stakeholders are individuals or groups that have an interest in the Bank or are affected by its actions. The primary stakeholders of the Bank are employees and management, shareholders and investors, and government and regulatory authorities.
The Bank's shareholding structure as at 30 June 2020 is as follows:
AfrAsia Bank has a good mix of local and international private institutional investors of renowned reputation across various continents and had a capital base of MUR 8.4bn as at 30 June 2020. The Bank ensures that there is proper and efficient information dissemination to all its shareholders and that the rights of minority shareholders are not neglected. It is noted that 0.32% of the Bank’s shareholding is held by its staff.
Dividends are proposed by management to its Board in line with the provisions of The Banking Act 2004 (amended August 2020), the “Guideline on Payment of Dividend” issued by BOM, The Companies Act 2001 of Mauritius and the Bank’s Constitution. Once the Board is satisfied with the Bank’s recommendation and once the solvency tests are met, approval of the Bank of Mauritius is then sought prior to distribution to shareholders.
Dividend on Ordinary Shares
The Bank has achieved a satisfactory financial return to allow dividends of MUR 429.3m (MUR 3.80 per share), declared and paid during the year under review (2019: MUR186.4m that is, MUR 1.65 per share /2018: MUR160.2m that is, MUR 1.50 per share). This can be summarised as follows:
|Dividends on Ordinary Shares (MUR’m)|
Dividend on Class A Shares
Dividend of MUR 73.7m were paid for the 6 months ended 31 December 2019 and MUR 73.7m for the 6 months ended 30 June 2019 (MUR 74.9m were paid for the 6 months ended 31 December 2018 and MUR 72.2m for the 6 months ended 30 June 2018). This can be summarised as follows:
|Dividends on Class A Shares – Series 1 and 2 (MUR’m)|
Please refer to the note on “Retained Earnings and Other Reserves” contained on Note 31 of the Annual Report
Article 21.2 of the Bank’s Constitution provides for a list of reserved matters which must be approved by special resolution of the voting shareholders of the Bank.
Restrictions concerning the disposal of shares are set out in Articles 15 and 16 of the Bank’s Constitution. Such restrictions include the requirement to obtain the Board’s approval in connection with the registration of share transfers.
As regards the Shareholders Agreement, three out of the four shareholders who are parties to the Agreement have terminated the Agreement by notice. The termination is, however, being disputed by one shareholder by way of arbitration and the matter will now be heard by the International Court of Arbitration in April 2021.
ABL has not entered into any significant contract with third parties during the financial year ended 30 June 2020.
ABL has not entered into any management agreement with third parties during the financial year ended 30 June 2020.
The Bank has made MUR 2.0m of gifts and donations during the year ended 30 June 2020 (2019: MUR 0.8m / 2018: MUR 1.5m).
The Bank has made political donations of MUR 3.5m during the year ended 30 June 2020 (2019 and 2018: Nil)
Please refer to the note on “Related Party Disclosures” contained on Note 36 of the Annual Report.
OUR KEY RELATIONSHIPS
EMPLOYEES AND MANAGEMENT
We continue to take a proactive approach towards our relations with primary stakeholders. When selecting suppliers, contractors or non-governmental organisations, we look for those that align closely to our values and areas of focus.
We offer a variety of ways for stakeholders to interact with us and provide feedback; we use this information towards understanding what is going well and improving areas of concern. We regularly review how we communicate with our stakeholders to ensure it is still appropriate in an ever-changing fast-moving world.
Below is an overview of our main stakeholders and how the Bank engages with them:
SHAREHOLDERS AND INVESTORS
GOVERNMENT AND REGULATORY AUTHORITIES
SOME KEY DATES
PUBLICATION OF FINANCIAL STATEMENTS
September or any other dates permitted by the Bank’s regulators
Ordinary shares Dividends
Post 30 June 2020 upon closure of accounts
Upon receipt of approval from local regulators
Class A Shares Dividends
Post June and December
Upon receipt of approval from local regulators, post June and December
The Annual Report is published in its entirety on the Bank’s website. (https://www.afrasiabank.com/en/about/investors/annual-reports).
The Corporate Governance Report have been approved on behalf of the Board of Directors:
Chief Executive Officer
Date: 19 November 2020