Envoy Textiles postpones general meeting over pending litigation
Envoy Textiles Limited has postponed its annual general meeting (AGM) which was scheduled to be held on 26 June this year due to the pendency of a litigation in the Appellate Division of the Supreme Court.
In April this year, Envoy Textiles called an AGM for the 2021-22 fiscal year as the conflict between its two major owners – Kutubuddin Ahmed and Abdus Salam Murshedy – has finally come to an end.
In its verdict, the High Court on 10 April reconstituted the company's board and asked it to hold the AGM within the next 90 days, Envoy Textiles said in a Dhaka Stock Exchange (DSE) filing.
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Company sources said Salam Murshedy filed an appeal in the Appellate Division challenging the High Court order.
In June last year, Salam Murshedy filed a case challenging some amendments in the company's articles of association, a meeting notice, and the appointment of three additional board members and an independent director.
Earlier, in September 2022, the High Court reconstituted the board of directors of Envoy Textiles and appointed retired justice Moyeenul Islam Chowdhury as its chairman for an interim period until the shareholders of the leading denim manufacturer are able to resolve their disputes.
According to the company's financial statements, sponsor-director Kutubuddin Ahmed and his family hold 34.06% of the company's shares, and Abdus Salam Murshedy's family and their associate companies own 23.87%.
The legal battle over supremacy at Envoy Textiles Limited, which is the world's very first LEED-certified platinum denim mill, started after the separation of Kutubuddin Ahmed from Envoy Textiles' parent company, Envoy Group.
