Chamber judge clears way for UCB AGM on 31 July
The judge has also set 4 August for a full hearing on the matter by the chief justice-led Appellate Division bench
The chamber court of the Appellate Division has cleared the way for United Commercial Bank (UCB) to hold its Annual General Meeting (AGM) as scheduled on 31 July.
Judge-in-Chamber Farah Mahbub gave the order today (29 July), staying an earlier order by a High Court bench that had postponed the AGM.
The stay was granted following an appeal filed by the bank against the High Court's 27 July order.
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Barrister Ruhul Quddus Kajal, the lawyer representing the bank, told reporters that six shareholders had petitioned the High Court to postpone the AGM, prompting the 27 July ruling.
UCB later challenged that decision before the chamber judge's court, he added.
The chamber judge also set 4 August for a full hearing on the matter before the chief justice-led Appellate Division bench.
Barrister Ruhul Kuddus Kajal said the petition filed by six shareholders seeking to postpone the bank's AGM lacks any legal basis.
"The Bangladesh Bank has formed an interim committee under Section 47 of the Bank Companies Act. This committee has the authority to perform all functions, including increasing share capital, issuing rights shares, and even forming a board of directors," he told reporters.
He further said, "The interim committee possesses the same powers as a regular board. Today, we presented before the court the bank's crisis involving nearly Tk4,000 crore — an outcome of gross mismanagement during the previous fascist regime. The bank was not administered properly. To restore its operations, the interim committee is now undertaking essential measures such as raising capital and issuing rights shares."
On the other hand, Barrister Mahbub Uddin Khokon, who represented the six shareholders, alleged that the current ad-hoc committee intends to take control of the bank by manipulating share distribution.
"They are planning to issue new shares and allocate 50% of the bank's paid-up capital to a strategic investor, which violates the law. According to the Bank Companies Act, no individual or entity can hold more than 5% of shares in any banking company," Khokon said.
He added that the six minority shareholders had challenged the bank's move in the High Court, which subsequently issued an order on 27 July to postpone the AGM.
