4 appointed as independent directors at RSRM

The four new independent directors

• AKM Shameem Chowdhury, ex-press secretary- Prime Minister's office — recommended as RSRM chairman
• Professor Dr Md Mushfiqur Rahman, Department of AIS, University of Dhaka
• Professor Md Mizanur Rahman, Department of Marketing, University of Dhaka
• Associate Professor Dr Ashis Talukder, Department of MIS, University of Dhaka

The Bangladesh Securities and Exchange Commission (BSEC) has appointed four independent directors at Ratanpur Steel Re-rolling Mills (RSRM) — a publicly listed Chattogram-based steel manufacturer that is knee-deep in debts.

The commission issued letters to the related parties in this regard on Monday.

The new independent directors are AKM Shameem Chowdhury, ex-press secretary- Prime Minister's office, and Dhaka University's Professor Dr Md Mushfiqur Rahman, Department of Accounting & Information Systems, Professor Md Mizanur Rahman, Department of Marketing, and Associate Professor Dr Ashis Talukder, Department of Management Information Systems.

Seeking anonymity, an official at the company said the BSEC recommended AKM Shameem Chowdhury for the company's chairman seat.

Company Secretary Mohammad Moin Uddin, when contacted for a comment on this matter, declined to provide any statement.

RSRM's owner Ratanpur Group is one of the largest industrial conglomerates in Chattogram. Founded in 1984, the group had around 800 employees engaged in production till 2019. The annual turnover of the company was about Tk700 crore at that time.

But in December 2020, two of the group's steel factories stopped producing rods due to long-standing electricity bill arrears and a shortage of working capital.

30 cases were filed against the group for defaulting on a total Tk2,500 crore loan taken from ten banks.

In various cases filed by the banks, Ratanpur Group Managing Director (MD) Maksudur Rahman, Chairman Shamsun Nahar Rahman, MD's brother Yunus Bhaiya, two sons Mizanur Rahman and Marzanur Rahman, and Chairman of Modern Steel Mills Limited Md Alauddin were accused. 

Amid all these issues, the shareholders have been deprived of their expected return as the company has not been able to recommend dividends for a few years. Also, the reopening of the two plants remains uncertain as of today.

Hence, in a move to bring the company back into business, the BSEC decided to appoint independent directors to protect the interest of investors.

Earlier, this August, the commission decided to investigate the overall business condition of the company.

RSRM shares closed at Tk17.1 each at the Dhaka Stock Exchange on Monday.