Govt to divest stake in First Women Bank, Utility Stores
Under BESOS, 12% stake in state-owned entities will be allocated to employees.
ISLAMABAD:
The government is all set to distribute 12% shares of First Women Bank (FWB) and Utility Stores Corporation (USC) to 8,412 employees under the Benazir Employee Stock Option Scheme (Besos) on September 12.
Out of the total, 7,929 employees of USC will benefit from the scheme, and 483 employees of FWB will benefit said an official of the Ministry of Privatisation while talking to APP. He said that, of the 12% shares of the entities, unit certificates will be formed and these certificates will then be distributed among the employees.
The government has set the sole criteria for the distribution of share certificates, which is determined by the length of service of the employee irrespective of the designation, he added. A lower grade employee whose service time is 15 years, will receive 15 certificates under the scheme whereas an officer of a higher grade will also get the same number of certificates, he said while quoting an example. Moreover, one share certificate will be given per year of employee service; however the maximum limit is 20 certificates. He said that the Trust for USC was registered on May 11, 2010 and for FWB on May 24, 2010.
The certificate entitled to the employees will not be handed over physically but will remain in the custody of the trust.
Whenever the employee retires, the market price of the unit certificate will be given to him instead of the certificate. Whenever, the corporation or bank announces any dividend, the shareholder will collect the dividend according to his shareholding. If the corporation or bank does not announce any dividends, the market value of the certificate on the date of the employee’s retirement will be transferred to the holder.
It is pertinent to mention that Besos was introduced by the current government to empower employees working in the state-owned companies by making them a shareholder in the company.
The trust of the company is formed of six members, three from government and three from shareholders. More than 250,000 employees of different companies and organisations has benefitted since the scheme was introduced by the government.
Published in The Express Tribune, September 7th, 2012.
The government is all set to distribute 12% shares of First Women Bank (FWB) and Utility Stores Corporation (USC) to 8,412 employees under the Benazir Employee Stock Option Scheme (Besos) on September 12.
Out of the total, 7,929 employees of USC will benefit from the scheme, and 483 employees of FWB will benefit said an official of the Ministry of Privatisation while talking to APP. He said that, of the 12% shares of the entities, unit certificates will be formed and these certificates will then be distributed among the employees.
The government has set the sole criteria for the distribution of share certificates, which is determined by the length of service of the employee irrespective of the designation, he added. A lower grade employee whose service time is 15 years, will receive 15 certificates under the scheme whereas an officer of a higher grade will also get the same number of certificates, he said while quoting an example. Moreover, one share certificate will be given per year of employee service; however the maximum limit is 20 certificates. He said that the Trust for USC was registered on May 11, 2010 and for FWB on May 24, 2010.
The certificate entitled to the employees will not be handed over physically but will remain in the custody of the trust.
Whenever the employee retires, the market price of the unit certificate will be given to him instead of the certificate. Whenever, the corporation or bank announces any dividend, the shareholder will collect the dividend according to his shareholding. If the corporation or bank does not announce any dividends, the market value of the certificate on the date of the employee’s retirement will be transferred to the holder.
It is pertinent to mention that Besos was introduced by the current government to empower employees working in the state-owned companies by making them a shareholder in the company.
The trust of the company is formed of six members, three from government and three from shareholders. More than 250,000 employees of different companies and organisations has benefitted since the scheme was introduced by the government.
Published in The Express Tribune, September 7th, 2012.