Karachi: The United Insurance Company has completed the distribution of a 20% bonus share issue to its shareholders following the approval granted at the Annual General Meeting held on April 25, 2025. On May 19, 2025, the company confirmed that the bonus shares had been dispatched or credited to both physical and Central Depository Company (CDC) shareholders, as per the company's communication.

The initiative comes after shareholders' formal approval, marking a significant step in the company's capital management strategy. The bonus shares distribution is expected to enhance shareholder value and provide additional liquidity to the market. The company's actions follow the guidelines set forth in Section 236Z of the Ordinance, which necessitates the collection of income tax from shareholders as part of the bonus share issuance process.

According to information available from the Pakistan Stock Exchange (PSX), the company has prioritized the dispatch and credit of withheld bonus shares to shareholders who have met their tax obligations. This ensures compliance with legal requirements and promotes transparency in the company's financial operations.

For shareholders who have not yet settled their income tax payments, the company will proceed to liquidate the withheld bonus shares. This measure aims to recover the required income tax amounts, ensuring that the company's financial responsibilities are met in accordance with regulatory standards.

The United Insurance Company's decision to issue bonus shares reflects its commitment to rewarding its shareholders, while maintaining adherence to fiscal regulations. The move is anticipated to have a positive impact on the designated market category, providing an impetus for potential future growth and investment opportunities.