Stock Bangladesh News
SEC asks listed cos to submit info on reconstituted boards
The securities regulator Wednesday asked the listed companies to submit information on their reconstituted boards, excluding the sponsor-directors, having less than two per cent shares individually, as many of them lost their directorships following its previous directive.
The companies will have to submit the list of directors along with their particulars, attested by the Registrar of Joint Stock Companies and Firms (RJSC), by November 15.
The decision was taken at a commission meeting, held at the Securities and Exchange Commission (SEC) with its Chairman Professor M Khairul Hossain in the chair.
The officials of the SEC and the Dhaka Stock Exchange said some 359 sponsor-directors have failed to acquire minimum two per cent shares within the stipulated timeframe.
The latest move came after the securities regulator issued a directive on November 22, 2011, saying that the sponsor-directors of the listed companies would have to individually hold at least two per cent shares of the total paid-up capital of their respective companies.
Otherwise, the individual shareholders having minimum five per cent shares would occupy the posts of the sponsor-directors, who would fail to comply with the directive within the six-month timeframe that ended on May 22.
A senior SEC official said as per the SEC's order the posts of the sponsor-directors having less than two per cent shares automatically fell vacant after the deadline.
The regulator, after a commission meeting on September 12, said among the 238 listed companies 233 have submitted information on the shareholding status of their sponsor-directors.
Among the remaining five companies, two are state-owned enterprises (SoEs), having no sponsor-directors.
Besides, the names of three private companies, which have not submitted information on their sponsor-directors' shareholding status, would be sent to the SEC's Enforcement Department for taking necessary actions.
After the issuance of the SEC's directive, five writ petitions were filed with the High Court (HC), challenging the directive. However, the HC upheld the directive, stating that the court found no illegality in it.
Source : Financial Express