SC clears way for independent directors to take role in 3 Beximco firms

The Appellate Division has stayed the High Court order that had suspended the activities of independent directors appointed by the Bangladesh Securities and Exchange Commission (BSEC) at three companies listed on the stock market.

The bench, led by Chief Justice Syed Refaat Ahmed, issued the order today (4 March) after hearing the BSEC's appeal to stay the High Court's rule.

The companies are Beximco Pharmaceuticals, Bangladesh Export-Import Company, and Shinepukur Ceramic Ltd.

According to a lawyer, with the Supreme Court's stay order, there is no legal obstacle for the independent directors to carry out their duties.

At the same time, the court directed dismissal of the rule, issued by the High Court regarding the appointment of independent directors at these three companies, within three weeks.

The BSEC had appointed 11 independent directors to the three listed companies on 31 December last year, following a directive from the Financial Institutions Division (FID) under the finance ministry.

However, on 15 January, the High Court stayed the BSEC's decision after Beximco Ltd, Beximco Pharmaceuticals, and Shinepukur Ceramics challenged the appointments through separate writ petitions.

The court also issued three rules asking the government to explain why the appointments should not be declared illegal.

Attorney General Md Asaduzzman and Barrister Abul Kalam Azad represented the BSEC, while Barrister Fida M Kamal and Barrister Kamal Ul Alam appeared for Beximco, Beximco Pharmaceuticals, and Shinepukur Ceramics.

Earlier, the FID reportedly directed the BSEC to appoint independent directors to the Beximco companies based on recommendations from an advisory council committee formed by the government to address issues related to Beximco.

The decision was made during a meeting on 31 December that focused on labour and business conditions at Beximco Industrial Park.

Following the arrest of Beximco Group Vice Chairman Salman F Rahman, the companies faced significant challenges, including labour unrest that spilled onto the streets.

In response, the government decided to appoint independent directors from diverse professional backgrounds.