Govt mandates direct elections, term limits for all trade bodies

Highlights:

• Direct elections for all posts
• To be limited to maximum of two consecutive terms
• Voters must cast their ballots in person
• One director can be nominated from single chamber or association
• FBCCI to have 46-member board, down from 80

The government has issued the Trade Organisation Rules, 2025, introducing significant reforms that mandate direct elections for the president, vice-presidents, and all other positions across all trade organisations, including the apex body, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI). 

A key provision also limits officials to a maximum of two consecutive terms, prohibiting them from running for a third.

Under the new regulations, the FBCCI's executive board, including the president, will be reduced to 46 members. Of these, 30 directors – 15 each from chambers and associations – will be directly elected through votes. Additionally, 10 nominated directors (five from each group) will be selected by the directly elected directors. One nominated director each will also be chosen from the Bangladesh Women Chamber of Commerce and Industry and women's associations.

Previously, the FBCCI's executive board comprised 80 directors, with 34 appointed through nomination. The former system also allowed for one president, one senior vice-president, and six vice-presidents (three each from chambers and associations) to be nominated. The new rules stipulate that only two vice-presidents, one each from chambers and associations, will be elected.

The new rules detail the process for selecting nominated directors: at their first meeting, the elected executive board will choose five directors from chambers and five from associations, along with two women directors, based on a majority vote of those present. 

This selection will consider factors such as investment volume, job creation, and annual revenue contribution to the government exchequer by the respective chambers and associations. No more than one director can be nominated from any single chamber or association, and all nominated directors must be members of the FBCCI's general council.

The new rules also prohibit proxy voting in trade organisation elections, stating that all eligible voters must cast their ballots in person. The tenure for any executive committee or governing body of a trade organisation will be 24 months from the date of assuming responsibility. An individual may re-contest an election after serving two consecutive terms, provided they skip one election in between.

The implementation of these new rules comes after the FBCCI president resigned following the fall of the Hasina government on 5 August last year, leading to the appointment of an administrator for the organisation. Elections for the FBCCI had been delayed pending the finalisation of these new trade organisation rules.

Md Hafizur Rahman, the administrator of the FBCCI, confirmed to TBS on Wednesday that the gazette for the Trade Organisation Rules has been issued and an election schedule will be announced very soon.

Controversy over nominated directors

There have been allegations that influential, government-connected businessmen formed new associations under various names and used their influence to secure positions as nominated directors on the FBCCI board, leading to a steady increase in the number of nominated directors.

Speaking to TBS, business leaders recalled that in 1994, Salman F Rahman was directly elected as president by the general council. Later, the election process was slightly modified. Members of the general council began electing directors by vote, while the president and vice-presidents were chosen by those elected directors.

During Amir Khasru Mahmud Chowdhury's tenure as commerce minister from 2001 to 2004, the regulations were changed to introduce a nomination system. That allowed leaders from large trade bodies and chambers, who were unable to win general council elections, to secure positions on the FBCCI board.

At that time, leaders from eight major trade organisations, including the Bangladesh Garment Manufacturers and Exporters Association, the Bangladesh Knitwear Manufacturers and Exporters Association, the Dhaka Chamber of Commerce and Industry, and the Metropolitan Chamber of Commerce and Industry, Dhaka, were appointed to the FBCCI board, while the remaining directors were elected by the council.

Since then, the number of nominated directors has steadily increased by one or two each year. In 2008, when Annisul Haque served as president, the FBCCI board had 38 members. That number steadily increased, eventually reaching 80.