BSEC to appoint independent directors to Z-category firms
Currently, 99 companies listed on the stock exchange fall under the Z-category
The Bangladesh Securities and Exchange Commission (BSEC) has directed all Z-category listed companies—and those whose sponsors and directors jointly hold less than 30% of shares—to comply with the Corporate Governance Code, 2018, by appointing independent directors.
The decision was taken at a BSEC meeting held at its office premises on Tuesday (27 May).
Currently, 99 companies listed on the stock exchange fall under the Z-category. In addition, around two dozen companies have failed to meet the regulatory requirement of sponsors and directors jointly holding at least 30% of shares.
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This regulatory move aims to enhance corporate transparency and accountability in underperforming and low sponsor-holding firms. By enforcing the appointment of independent directors, BSEC intends to strengthen governance practices and restore investor confidence in the capital market.
According to the BSEC, the initiative is part of a broader effort to promote sound corporate governance and protect the interests of general shareholders.
