Foreign shareholders also not spared from LR Global
Foreign investors also victim for LR Global Bangladesh Asset Management Company, one of the country’s asset managers,. The owner of the company, Riaz Islam, has kept the foreign owners in the dark for the last eight years. Not giving any dividend or any kind of information. Foreign owner Gavin Wilson has appealed to the regulatory body Bangladesh Securities and Exchange Commission to address the issue.
In a letter sent to BSEC on February 25, it said New York-based private investment firm and LR Global Bangladesh owns 47.70 per cent stake in Asset Management. Partner Gavin Wilson wrote a letter to LR Managers Investments, LP, along with the BSEC chairman.
In a letter to BSEC, the foreign partner of LR Global Bangladesh Asset Management Company said they were aware of the long-running legal case against the company and CIO Riaz Islam. In this situation they want to discuss to solve the problem for better management of the organization.
The letter said they had received many allegations against Riaz Islam as a partner. Besides, they are aware of Riaz Islam’s current activities and are very unhappy. In the last 8 years, foreigners have stated that they have not received any dividend despite owning 47.60 per cent. Although the asset management company declares dividends every year. Besides, Riaz Islam is getting regular salary and bonus.
Entrepreneurs of various funds like them are also aware of Riaz, the letter said. It has been said that the issue should be resolved before it has a negative impact on the mutual fund industry of Bangladesh and their companies. They will contact each entrepreneur to discuss their attitude and seek their cooperation in changing Riaz Islam. They also said they would buy ownership or shares of Riaz Islam to gain confidence and get the cooperation of stakeholders.
Foreign LR Global has been investing in Bangladesh since 2000 and has relied on the economy, markets and investment opportunities, the letter said. They say Bangladesh needs a strong stock market and mutual fund industry for development.
