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The deadline for the companies to meet the regulatory requirement expires on November 30
Bangladesh Securities and Exchange Commission (BSEC) would restructure the board of companies that fail to comply with the 30 per cent shareholding requirement by their sponsors and directors.
The deadline for the companies to meet the regulatory requirement, enforced after the market crash of 2010 to tie down the sponsors, expires on November 30.
As per a stock market regulator directive, all sponsors or promoters and directors of a listed company must jointly hold a minimum of 30 per cent shares of the paid-up capital of the company at all times.
The sponsors and directors of the companies in question are holding their positions in violation of a 2011 Bangladesh Securities and Exchange Commission directive.
Earlier on July 29, the new commission asked 44 companies to ensure a minimum 30 per cent shares in their own companies within 60 days.
As per information received from the regulator on September 30, 41 of the 44 were yet to comply with the rule.
Earlier, the commission decided to strip 17 directors of 10 listed companies from their posts for not complying with the minimum 2 per cent share in their own organisations.
Before, the securities regulator asked 61 directors of 22 listed companies to ensure a minimum 2 per cent shareholding in their own companies within 45 days to continue their directorship.
Stock market investors alleged that many sponsors and directors have sold off their shares but still are holding controlling stake in the companies.
(DT)
