2 directors of Simtex Industries resign without informing the DSE

Two directors of Simtex Industries Limited have resigned from the company's board of directors without informing the Dhaka Stock Exchange (DSE).

These two directors – Ensan Ali Sheikh and Hafiza Khanam – are accused of secretly selling their company shares, said sources at the DSE, adding that each of them owned 2.15% shares of the company. 

Ensan is the older brother of Siddiqur Rahman, the original entrepreneur of the company. Hafiza is the older sister of Siddiqur Rahman's wife.

Sources said the two directors resigned in February this year and two new directors, Sharif Shahidul Islam and Hafizur Rahman, were appointed. Excel FARMGANIC Limited, which owns 2.36% shares of Simtex, nominated Sharif and Hafizur as directors.

Share market insiders believe that Excel FARMGANIC bought the shares owned by Ensan Ali Sheikh and Hafiza Khanam.

In this regard, a responsible official of DSE said the board of the company was reshuffled without informing shareholders, which is a violation of securities law. DSE is looking into the matter and the allegation of selling the shares secretly.

Not only the two directors, but Zahangir Alam, sponsor of the company, also severed ties with the company by selling his 0.75% stake, the official added.

No employee of the company agreed to comment on the matter.

Simtex Industries Limited was listed on the stock market in 2015. At that time the independent director of the company was Uzzal Kumar Nandi, a close associate of PK Halder who is much talked about for embezzlement of thousands of crores of taka.

According to embezzlement cases filed by the Anti-corruption Commission, PK Halder invested Tk23 crore in Simtex Industries stock in the names of its founder Siddiqur Rahman, wife Mahfuza Rahman, and sons Niaz Rahman and Ishtiaque Rahman, elder brother Ensan Ali Sheikh, and sister Hafiza Khanam. International Leasing provided Simtex with a loan of Tk800 million.

Currently, none from the family except Siddiqur Rahman, the founder, and Niaz Rahman, the current managing director of the company, are playing any role in the company.

Siddiqur Rahman's wife Mahfuza Rahman was the chairman of the company at the time of its listing on the stock market. Former army officer Anisur Rahman is currently serving as the chairman. He joined the board of the company in January 2021.

The company paid a 4% cash dividend to shareholders for the financial year ended 2021. Its shares traded for Tk20.10 on the DSE on Sunday.