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The directors would stay on until the companies meet the compliance requirement
The stock market regulator is set to appoint two independent directors in the 24 companies that failed to ensure the minimum shareholding of 30 per cent by sponsors within the deadline of December 10.
The directors would stay on until the companies meet the compliance requirement, said the directive issued by the Bangladesh Securities and Exchange Commission on Thursday.
The independent directors will submit quarterly reports within 10 days of quarter’s end to the regulator on the progress of the shareholding requirement, it added.
A board of the Central Depository Bangladesh (CDBL) will form a three-member commission to run the election for the position of independent directors for the companies. The election schedulewould be announced within 45 days of the issuance of the directive.
CDBL will provide a list of eligible candidates who individually hold at least 2 per cent shares of the paid-up capital of the company.
The board of directors of the company will recommend the name of eligible candidates. Shareholders can then vote through the e-voting platform provided by the CDBL.
The BSEC was compelled to take the step after the companies ignored its repeated calls to raise their sponsors’ combined shareholding to at least 30 per cent.
Earlier on July 29, the securities regulator found 43 companies were not meeting the regulatory requirement and gave them until December 10 to comply.
A mere 19 companies have responded to the call of the regulator; 24 of the companies have defied the directive.
Of the 24, five companies — Intech, Apex Footwear, Delta Spinners, AppolloIspat and Central Pharma — have sought time extension from the BSEC to meet the regulatory requirement.
The commission had previously to strip 17 directors of 10 listed companies from their posts for not holding the minimum of 2 per cent shares.
(DT)
