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Oct 1, 2012

No dividends issued at Telemedia meeting

Telemedia held its annual general meeting on Friday night as scheduled. Seated at the head table were: Chairman Nestor Vasquez, and board members: former Prime Minister Manuel Esquivel, Ambrose Tillett, Doug Singh and C.E.O.s George Lovell and Audrey Wallace. The chairman said that the meeting had to be held within six months at the end of the fiscal period which was in March. The big question going into the AGM was whether dividends would have been paid by the Telemedia executives in defiance of an injunction by the Caribbean Court of Justice. During the session Vasquez indicated that dividends would not be issued to shareholders. There were not many shareholders who questioned the injunction and the authority of the CCJ.

 

Net Vasquez, Chairman, Telemedia

“The drop in gross revenue of twelve point four million dollars was not really a decrease in revenue from services, but is based on the change of the tax rate in the previous year in which we included thirteen million dollars worth of revenue because government was kind enough to have reduced the rate of tax on internet service. And for that reason, we were able to record an extraordinary item of thirteen million dollars in the year 2011 as revenue because of the change in the tax rate. Therefore, our gross revenue stabilized even though we have been reducing rates steadily from the time the renationalization took place. I have to mention that agenda item number two which deals with the declaration of dividends has to be changed to report the reasons for adjourning the declaration of dividends. This means that that agenda item is postponed in accordance with the ruling of the Caribbean Court of Justice. You will be given an opportunity to ask your questions on this issue when that agenda item comes up at which time we will give you a full report on that matter. They said that the company was calling the meeting just to pay the dividends to please the government—I think they used the words; for a bankrupt government. That is not true at all. We were merely complying with the articles because we had to do so; that’s the correct thing to do. It had nothing to do with the government. The government has to allow us to comply with the requirements of the articles because that is our fiduciary duty to do so. I say that because we want the general public to know that what they said on the airwaves, in particular what Mr. Courtenay said, was totally untrue; totally wrong. That needs to be said. The government as the special shareholder hereby notifies you that government does not agree with the declaration of dividends at the meeting scheduled for the twenty-eight September or any other date before the fourteenth day of December 2012. The issue of the declaration of dividends must therefore be adjourned to a date not before the fourteenth day of September in compliance with the aforesaid order of the CCJ. Therefore, we have to comply with the instructions that is given to us by the special shareholder because they do have the authority under article 128(B) to exercise this authority.”

 

Currently, the government owns sixty-three percent of shares, Social Security Board, twenty percent, Central Bank of Belize has eight percent and small shareholders own approximately nine percent of Telemedia shares.

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1 Response for “No dividends issued at Telemedia meeting”

  1. Rod says:

    Nothing but thief di go on remember barrow thief never prosper.

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