BSEC appoints independent directors at three Beximco firms

Infographic: TBS

The Bangladesh Securities and Exchange Commission (BSEC) has appointed independent directors to three listed companies owned by the Beximco Group, as per instructions of the Financial Institutions Division under the finance ministry.

A directive was issued today (31 December) by the securities regulator, appointing independent directors to Bangladesh Export-Import Company (Beximco), Beximco Pharmaceuticals, and Shinepukur Ceramics for a three-year term, effective immediately.

The appointed independent directors include Shahinoor Islam, a professor at BUET; Syed Rezaul Karim, chairman of Bengal Overseas; Sultan Mahmood Bin Zulfiqar, writer and journalist; Forkan Uddin, president of the Institute of Chartered Accountants of Bangladesh (ICAB); Mirza Aminur Rahman, freelance consultant; Nurul Alam, CEO of MNA Associates; Sheikh Nahar Mahmud, chief consultant of Infinigent Consulting; Brigadier General Shafqat-Ul-Islam; and Anwar Hossain, vice chairman of the Export Promotion Bureau (EPB).

These directors will serve as independent members on the boards of Beximco Limited and Beximco Pharmaceuticals. 

Meanwhile, Shinepukur Ceramics will have a total of seven independent directors, six of whom are common across the companies, with Brigadier General Mohammad Mohtashim Haider Chowdhury being the new addition.

Rezaul Karim, spokesperson and executive director of the BSEC, stated that the commission appointed independent directors to ensure a majority on the boards of the companies, with the goal of safeguarding investor interests and ensuring compliance. 

However, he clarified that the commission did not dissolve the boards, as it does not have the authority to do so.

He further emphasised that independent directors play a crucial role in protecting the interests of general investors, alongside the existing shareholder directors.

Earlier, on 29 December, the Financial Institutions Division directed the BSEC to appoint independent directors in the Beximco companies following a decision by the Advisory Council Committee on labour and business conditions of Beximco Industrial Park on 11 December.

Prior to the Advisory Council decision, on 10 December, the securities regulator decided to conduct a special audit of the financial records of the three Beximco companies for the past five years.

Salman F Rahman, who is the vice-chairman of the three Beximco firms and was also the private investment affairs adviser to ousted prime minister Sheikh Hasina, is currently under arrest in several cases.

Following the fall of the Awami League government, Beximco Group fell into deep trouble over loan scams and financial irregularities.

In this situation, at the mid of December, the Beximco Group laid off 30,000 workers from its 16 apparel factories in Gazipur Industrial Park, citing a lack of orders and banking support.

However, Beximco Limited has clarified that its production units remain fully operational, with no workers laid off.

In response to a Dhaka Stock Exchange (DSE) query dated 22 December regarding a news report about layoffs, the company issued a statement that was published on the stock exchange's website.

Beximco Group owes over Tk23,400 crore to state-owned Janata Bank, with Tk19,507 crore classified as bad loans as a result of blatant violation of Bank Companies Act during disbursement.

A meeting of the Advisory Council Committee on the labour and business situation of Beximco Industrial Park, held at the Secretariat on 28 November, decided to divide 169 companies of Beximco Group into three categories.

According to the decision, Beximco Pharmaceuticals is the only A category firm. A total of 32 firms have been categorised as B category and their lenders were asked to issue expressions of interest to ownership and control transfer to international operators.

The weakest 136 firms, falling into C category, have been prescribed to shut down by clearing workers' three-month dues.

The Advisory Council meeting also resolved to designate the Bangladesh Bank-appointed receiver of Beximco Industrial Park and the Bangladesh Securities and Exchange Commission as the implementing authorities for the planned actions.