Company Act to be modernised with business community input: Commerce minister

The Companies Act 1994 will be amended based on the views of businesspeople and industrialists to make the business environment easier, more transparent and investment-friendly, Commerce Minister Khandakar Abdul Muqtadir said today (7 September).

"The law will primarily be used by businesspeople, so it must be modernised based on their needs, practical experience and future requirements," he said at a meeting at the FBCCI office in Motijheel.

The minister said the law had not undergone major changes for a long time, while business practices, technology, investment structures and global trade had changed significantly.

"Therefore, the law must be modernised in line with current realities and international standards," he said.

The government does not want to rush the process, he said, adding that the views and preparedness of relevant stakeholders would be considered before further decisions.

Businesspeople and other stakeholders have been given 30 days to review the draft amendment and submit their opinions, though the timeframe could be extended if necessary, the minister said.

"If you need 30 days, take 30 days. If you need 60 days, take 60 days. This will ultimately be implemented for you," he told the business community.

He said the government would review effective company laws in different countries and adopt provisions relevant to Bangladesh, particularly from countries with easier and more investment-friendly business environments.

Reforms are essential for LDC graduation and economic development, Muqtadir said, adding that company law reform is an important part of broader economic reforms.

"Making business easier will increase investment, create jobs and accelerate economic growth," he said.

He said various parameters had been set for Bangladesh's LDC graduation over the next three years, with company law being an important component.

"This is a transition period for all of us. Be patient; we will move forward with you," he said.

BSEC & Business Community Proposals

At the meeting, the Bangladesh Securities and Exchange Commission (BSEC) proposed allowing listed companies to buy back their own shares.

BSEC Executive Director Abul Kalam said several proposals submitted by the commission on 18 December 2025 for amendments to the Companies Act were not reflected in the current draft, including share buybacks.

He said Section 58 of the existing law restricts companies from purchasing their own shares and called for allowing listed companies to buy back shares under specific conditions.

The BSEC also proposed modernising companies' annual reports and allowing digital publication.

It suggested replacing "balance sheet" with "annual financial statements" and "board report" with "annual report" to update the law's terminology.

Business representatives also called for aligning annual general meeting schedules with the new fiscal year, clarifying the definition of a company group and reconsidering the proposal to change auditors.

FBCCI Administrator Md Fazlul Hoque urged business organisations to submit written recommendations within seven days.

He said a revised draft would be published within a month after considering the recommendations.