Breach of minimum shareholding rule: 17 directors of nine companies to lose posts
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A total of 17 directors of nine listed companies are going to lose their directorship for not holding minimum 2.0 per cent shares.
The securities regulator on Thursday finalised the decision signed by its chairman Prof Shibli Rubayat Ul Islam.
The officials of the Bangladesh Securities and Exchange Commission (BSEC) said the regulatory order regarding cancellation of directorship of non-compliant directors will be issued on Sunday.
In 2011, the securities regulator issued a directive setting the condition of holding minimum two per cent shares by each director of the listed companies.
The previous commission was not able to bring all directors under the compliance of holding stipulated amount of shares.
The incumbent commission, led by Prof Islam, took stern action against the errant directors.
The BSEC gave a two-month ultimatum to 61 directors in early July to comply with the regulatory directive by holding minimum two per cent shares.
Of 61 non-compliant directors, 25 complied with the directive by purchasing shares while 19 others gave up directorship upon the failure of purchasing stipulated amount of shares.
The remaining 17 directors neither purchased shares nor resigned from the boards.
Under such a situation, the securities regulator cancelled their directorship on Thursday and the order will be issued on Sunday.