BSEC removes 17 more directors

The securities regulator on Sunday declared the posts of 17 directors of nine separate listed companies vacant as they failed to hold the mandatory minimum of 2.0 per cent shares each despite getting time.

The Bangladesh Securities and Exchange Commission (BSEC) issued an order on Sunday cancelling their directorships.

The majority of the non-compliant directors, who lost their directorships, belong to insurance companies.

“..in exercise of the power conferred by the section 2A of the Securities and Exchange Ordinance, 1969 the commission hereby declares casual vacancy or stand vacant of the their position of directors of issuer companies,” said the BSEC order signed by its chairman Prof. Shibli Rubayat Ul Islam.

Besides, the commission directs the respective boards to fill up the vacancy from any shareholders having 2.0 per cent or more shares of the paid-up capital within 30 working days of issuing the order.

The directors who lost their position from the boards, are:

Sohail Humayun of Bangladesh General Insurance Company, Pioneer Dresses of Eastern Insurance Company, Md. Lukman Chowdhury of Imam Button Industries, ATM Habibul Alam, Sadiqa Mahbub, and Anisuzzaman of Intech Ltd, Sharmin Nasir and Dilruba Sharmin of Meghna Life Insurance, Shafiq Ahmed, Azad Mostafa, Aziz Mohammad Ershad Ullah, Farhana Islam Sonia, and Saad Qadir bin Solaiman of Mercantile Insurance, Habib E Alam Chowdhury and Badlur Rahman Khan of Provati Insurance, Mohammad Iqbal of Purabi General Insurance and Shahinur Alam of United Airways (BD).

In 2011, the securities regulator had issued a directive for holding a minimum of 2.0 per cent shares by each director, other than independent ones, of the listed companies.

Many continued to hold their directorship in listed companies without holding the stipulated volume of shares until the reconstitution of the BSEC.

After taking over the charge of the BSEC, the incumbent commission found that 61 directors of 22 listed companies did not comply with the minimum share-holding directive.

On July 2, the commission gave an ultimatum to the directors to hold the stipulated amount of shares within 45 working days.

Of the 61 directors, 25 complied with the directive, 19 left their directorships following the BSEC’s ultimatum.

And the remaining 17 directors of nine companies continued their directorship without complying with the rules. Sunday’s order brought an end to that privilege.

Despite repeated attempts to contact some of the directors, no-one was available for comments.