Regulator-appointed Ring Shine board stayed for six months 

The High Court has stayed the operation of Ring Shine Textiles Ltd's board, which was reconstituted by the Bangladesh Securities and Exchange Commission (BSEC), for six months.

On 29 January, the court also issued a rule asking the market regulator to explain why the new board should not be repealed, according to Md Saddam Hossain, a lawyer representing sponsors and directors of the embattled textile firm.

The court allowed the board, which incorporated existing sponsors and directors and was formed on the expiry of the previous board on January 26.

On 18 January, the BSEC appointed five independent directors to the company for three years, effective on 26 January, in an effort to revitalise the export-oriented textile manufacturer, which has been facing various challenges for years.

The company owners challenged the BSEC decision in the High Court.

In August last year, the BSEC conditionally allowed Wise Star Textile Ltd and five Singapore-based companies to acquire Ring Shine's sponsor-director shares. However, the deal was not executed in the end.

In a written comment, Sung Weyn Li Angela, managing director of Ring Shine, told The Business Standard, "The company is regaining its market standing with a good quantity of orders being secured to date."

Moreover, productivity is improving increasingly, attaining 40% in current capacity utilisation from the prior 7%–8%, with a target to achieve 60% capacity utilisation in the coming month, she added.

"We are hopeful to provide further news of our progress to our respected shareholders in updates shortly," she said.