Experts call for urgent update of outdated Companies Act 1994

Experts at a workshop organised by the Dhaka Chamber of Commerce and Industry (DCCI) have called for an urgent update to the Companies Act 1994, describing the existing law as outdated and inadequate for the needs of a modern economy.

 The workshop, titled 'Importance of Board Meeting, AGM, EGM and Compliance of Limited Companies', was held today (2 August) at the DCCI auditorium. AKM Nurunnabi Kabir, Registrar (Additional Secretary) of Joint Stock Companies and Firms (RJSC), attended as chief guest. 

In his opening remarks, DCCI President Taskeen Ahmed stressed the growing importance of institutional transparency, accountability and good governance in managing limited companies, especially in light of Bangladesh's economic and industrial development.

He observed that many entrepreneurs and professionals often struggle with the complexities of company law due to a lack of clear guidance. The workshop, he said, aimed to provide clarity on key areas including board meetings, annual and extraordinary general meetings, proper procedures for timely compliance, and how to maintain constructive engagement with regulatory bodies.

Speaking at the event, RJSC Registrar Nurunnabi Kabir noted that over 2 lakh 75 thousand business entities are currently registered with the RJSC, and most registration services are now available online; except for share transfers, which are expected to be digitised soon following security review.

He urged business owners to adhere strictly to legal and regulatory requirements to avoid complications, and recommended training staff in the relevant provisions of the Companies Act, Articles of Association, securities law, and related legislation.

Two keynote papers were presented by Mohammed Sanaullah, CEO and Lead Consultant at Sanaullah & Associates, and Md Selim Reza, FCA, Partner at Artisan Chartered Accountants. They underscored that all businesses – whether public, private, or proprietorship – must comply with relevant laws and regulations.

They noted that with Bangladesh's economy growing rapidly and global competition intensifying, strict adherence to compliance standards is more crucial than ever. Compliance not only builds trust and credibility, they said, but also helps curb malpractice and misuse.

Both speakers echoed the call for reforming the Companies Act 1994, which they said no longer aligns with current business realities.

DCCI Senior Vice President Razeev H Chowdhury and Vice President Md Salem Sulaiman were also present at the event.