Share transfer ban: Power ministry seeks Law's opinion on Summit's deal violation claim | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Thursday
July 10, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
THURSDAY, JULY 10, 2025
Share transfer ban: Power ministry seeks Law's opinion on Summit's deal violation claim

Energy

Abul Kashem
08 October, 2024, 10:20 pm
Last modified: 09 October, 2024, 02:06 am

Related News

  • Police disperse crowd, reinforce ban on rally near Jamuna: DMP
  • Pogba joins Monaco after serving doping ban
  • Concerned about changes to legislation allowing ban on political parties in Bangladesh: UN rights chief
  • UN nuclear watchdog says Iran in breach of obligations, Iran announces counter-measures
  • 3-month ban on fishing, tourism in Sundarbans from 1 June

Share transfer ban: Power ministry seeks Law's opinion on Summit's deal violation claim

The NBR last week directed the office of the Registrar of Joint Stock Companies & Firms (RJSC) to restrict the transfer of shares of seven conglomerates, including Summit

Abul Kashem
08 October, 2024, 10:20 pm
Last modified: 09 October, 2024, 02:06 am
Share transfer ban: Power ministry seeks Law's opinion on Summit's deal violation claim

The power ministry has sought the law ministry's opinion on whether the National Board of Revenue's restriction on share transfers by companies owned by Summit Group violates the agreements the government signed with the group's companies.

The NBR last week directed the office of the Registrar of Joint Stock Companies & Firms (RJSC) to restrict the transfer of shares of seven conglomerates, including Summit.

In response, on 4 October, Singapore-based Summit Power International Ltd (SPIL), the parent company of Summit Corporation Ltd, which operates Summit Power and other entities in Bangladesh, wrote to Energy Adviser Fouzul Kabir Khan and Finance Adviser Salehuddin Ahmed, requesting the removal of Summit's name from NBR's list.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

SPIL in its letter, seen by TBS, also claimed the restriction on share transfers (purchase, sale, and donation) violated its companies' agreements with the Bangladesh government.

When asked, Energy Adviser Fouzul Kabir Khan told TBS, "We have requested the law ministry for its opinion on the company's claim regarding a violation of the agreements signed between SPIL and the government, stemming from the NBR restriction on share transfers."

"We have not yet received the ministry's opinion. Once it is received, the government will take appropriate action," he said.

According to SPIL's claim, lenders' step-in rights are considered a key feature of bankable project agreements and have been enshrined in the implementation agreement signed between the respective project companies (of Summit) and the government of Bangladesh.

In the letter, the company said that Section 9 of the agreement provides explicit rights to the lenders to take possession of the project upon occurrence and continuance of an event of default under the financing documents and the right for the lenders to assign their rights, interests and the rights of the project company to a qualified transferee. 

Section 10.1 of the agreement further stipulates that the government shall ensure that no government authority takes any discriminatory action which materially and adversely affects the project or the performance of the company's obligations, or the enjoyment of its rights or the interests of the investors or lenders under the security package or expropriates or, except as hereinafter provided, acquires the facility or the company, whether in whole or in part, it said. 

SPIL said that the notice issued by the NBR suspending Summit Group's right to transfer shares has compromised the lenders' rights under the project security package and consequently violates Section 10.1 of the respective project companies' implementation agreements.

Energy Adviser Fouzul Kabir said, "SPIL's claim appears unfounded. They are citing a violation of a clause in the agreement, but the NBR has imposed restrictions on share transfers under certain laws. In such cases, the law takes precedence over the agreement. Nevertheless, we have requested the law ministry's opinion."  

SPIL said, "Any restrictions on transfer shares imposed by the authorities would erode the security package and trigger an event of default under the relevant loan agreements."

"In addition, there is a potential concern that such events of default could lead to further cross-defaults, resulting in far-reaching detrimental impacts," it said.

Highlighting the fact that Summit Group's power companies are facing hurdles in opening fuel import letters of credit (LCs) due to the ban, SIBL said, With the impairment of lenders' security package and the climate of fear instilled in the local banking community by the issuance of this notice, Summit has encountered great difficulties in procuring the LCs required for the import of liquid fuels for our power plants."

"Summit's liquid fuel power plants are unable to comply with the dispatch instructions issued by Bangladesh Power Development Board. This has a significant adverse impact on Bangladesh's power supply situation, thereby reducing the country's economic growth prospects," said the company.

In the letter, signed by SPIL's Chief Financial Officer Wu Yan Bin, the company requested the government not to impose restrictions on Summit Narayanganj Power Unit 2, Summit Barisal Power, ACE Alliance Power, Summit Gazipur 2 Power, Summit Meghnaghat Power Company, Summit Meghnaghat Power Company 2, Summit LNG Terminal and Summit Bibiyana Power Company.

"All these projects are financed by renowned lenders and development agencies, including International Finance Corporation, Asian Development Bank, Islamic Development Bank, Swiss Export Risk Insurance, Deutsche Investitions– und Entwicklungsgesellschaft (DEG) and other European Development Agencies," said SPIL.

SPIL, which is 22% owned by JERA Co Inc, Japan's largest power generation company, has invested billions of dollars in Bangladesh in partnership with General Electric of the USA and Taiyo Life Insurance Company of Japan, generating capacity of over 2500 MW of electricity, for the Bangladesh Power Development Board and the Rural Electrification Board.

Furthermore, SPIL in partnership with Mitsubishi Corporation of Japan has developed essential LNG FSRU with subsea pipeline and mooring offshore infrastructure for Petrobangla, underscoring its commitment to supporting Bangladesh's energy security. 

 

Bangladesh / Top News

summit / Share transfer / Ban / violation

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • In terms of stream of education, girls maintained their excellence as well. Photo: TBS
    Lowest SSC pass rate in 17 years as over 6 lakh students fail
  • BNP Secretary General Mirza Fakhrul Islam Alamgir while speaking at a discussion at National Press Club on 10 July 2025. Photo: TBS
    'Backbone of economy will break': Fakhrul says govt should've worked seriously with more qualified people on US tariffs
  • S Alam Group Chairman Mohammed Saiful Alam. Photo: Collected
    Court freezes foreign investments of S Alam Group chairman, family in Singapore

MOST VIEWED

  • Graphics: TBS
    BB raises startup fund limit, drops upper age barrier
  • Workers pack undergarments at the packing section of a garment factory in Ashulia, on the outskirts of Dhaka, Bangladesh, April 19, 2025. Photo: REUTERS/Fatima Tuj Johora
    After US tariffs, jobs hang by a thread in Bangladesh's garments sector
  • Global Islami Bank rectifies 2023 figures, reports Tk2,259cr loss instead of Tk128cr profit
    Global Islami Bank rectifies 2023 figures, reports Tk2,259cr loss instead of Tk128cr profit
  • Bangladesh Bank Governor Ahsan H Mansur. TBS Sketch
    Audit reports of most banks contain cooked up data: BB governor
  • File photo of containers at Chattogram port/TBS
    US buyers push Bangladeshi exporters to share extra tariff costs
  • CA orders law enforcers to complete all election preparations by December
    CA orders law enforcers to complete all election preparations by December

Related News

  • Police disperse crowd, reinforce ban on rally near Jamuna: DMP
  • Pogba joins Monaco after serving doping ban
  • Concerned about changes to legislation allowing ban on political parties in Bangladesh: UN rights chief
  • UN nuclear watchdog says Iran in breach of obligations, Iran announces counter-measures
  • 3-month ban on fishing, tourism in Sundarbans from 1 June

Features

Illustration: TBS

Behind closed doors: Why women in Bangladesh stay in abusive marriages

1h | Panorama
Purbachl’s 144-acre Sal forest is an essential part of the area’s biodiversity. Within it, 128 species of plants and 74 species of animals — many of them endangered- have been identified. Photo: Syed Zakir Hossain/TBS

A forest saved: Inside the restoration of Purbachal's last Sal grove

1h | Panorama
Women are forced to fish in saline waters every day, risking their health to provide for their families. Photo: TBS

How Mongla’s women are bearing the brunt of rising salinity

23h | Panorama
Dr Mostafa Abid Khan. Sketch: TBS

Actual impact will depend on how US retailers respond: Mostafa Abid Khan

2d | Economy

More Videos from TBS

SSC and equivalent results released: Pass rate 68.45%, GPA drops by 5

SSC and equivalent results released: Pass rate 68.45%, GPA drops by 5

16m | TBS Today
Islami bank aims to increase deposits to Tk 2 lakh crore by 2025

Islami bank aims to increase deposits to Tk 2 lakh crore by 2025

2h | TBS Programs
The two countries still face major challenges and mutual suspicions

The two countries still face major challenges and mutual suspicions

1h | Others
RMG sector braces for impact as US tariffs hit: Fakhrul

RMG sector braces for impact as US tariffs hit: Fakhrul

2h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net