HIDCL Calls Annual General Meeting with Dividend Proposal
14th December 2025, Kathmandu
Hydroelectricity Investment and Development Company Limited (HIDCL) has announced that it will convene its 14th Annual General Meeting (AGM).
HIDCL Calls AGM
The decision to call the meeting was finalized during a gathering of the Board of Directors held on Mangsir 26. This AGM is a significant event for the company, focusing on dividend distribution, financial approvals, and key governance matters.
The AGM is scheduled to take place on January 5, 2026 at 10:00 AM. The chosen venue for the meeting is Karki Banquet in Babarmahal, Kathmandu. This formal assembly of shareholders will review the company’s performance for the past fiscal year and vote on important resolutions that will shape the company’s future direction.
Dividend Proposal and Shareholder Returns
A primary item on the agenda is the proposal for distributing dividends to the company’s shareholders, rewarding them for their investment and the company’s operational returns.
Dividend Composition: The proposed dividend package consists of both stock and cash components, based on the company’s current paid-up capital.
Bonus Shares: The company plans to distribute 1.5 percent bonus shares. The issuance of bonus shares is a common mechanism used by companies to capitalize their earnings, which increases the company’s equity base while providing shareholders with additional shares.
Cash Dividend: Additionally, a 2 percent cash dividend is proposed. This cash component is inclusive of the tax liability on the dividend amount.
Shareholder Eligibility: The dividend, once approved by the AGM, will be distributed to eligible shareholders. This proposal signals the company’s commitment to providing returns while conserving capital for future investment, aligning with its core mandate in the energy sector.
Financial and Corporate Governance Approvals
The AGM is mandated by law to review and approve the company’s financial health and ensure proper corporate governance structures are in place.
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Financial Statement Approval: The meeting will discuss and subsequently approve the annual report of the previous fiscal year. This approval extends to the critical financial documents, including the auditor’s report, the balance sheet, the profit and loss statement, and the cash flow statement, along with any other related financial disclosures. The formal acceptance of these audited reports is essential for regulatory compliance and transparency.
Auditor Appointment: Shareholders will participate in the process of appointing an external auditor for the current fiscal year. This step is crucial for maintaining independent financial oversight. The AGM will also be tasked with determining the auditor’s remuneration, ensuring fair compensation for the services rendered.
Director Election: To ensure balanced representation and effective governance, the AGM will elect one director representing public shareholders. This mechanism guarantees that the interests of the non-promoter shareholders are represented on the Board of Directors.
CSR Expenditure Approval: The meeting will formally approve expenditures made under corporate social responsibility (CSR) during the previous period. This ensures that the company’s social contributions are transparently reviewed and ratified by the shareholders.
Constitutional Amendments: The AGM is set to grant authority to the Board of Directors to make any necessary amendments to the Memorandum of Association and Articles of Association. This authorization provides the board with the flexibility to quickly implement any revisions required by the various regulatory authorities, particularly those overseeing the energy and financial sectors.
Book Closure Date and Eligibility Criteria
For the purpose of identifying the shareholders eligible for both attending the meeting and receiving the proposed dividend, the company has announced a specific book closure date.
Book Closure Date: The share register will be closed for one day on Poush 8.
Eligibility Cut-off: Consequently, only those shareholders who have purchased HIDCL shares and are registered in the Nepal Stock Exchange (NEPSE) up to the end of trading on Poush 7 will be eligible. This means December 22 is the last day to buy or hold the shares to qualify for the benefits.
This AGM announcement confirms HIDCL’s continued operation under stringent corporate governance, signaling stability and a commitment to providing returns to its broad base of investors while supporting Nepal’s hydroelectric development.
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