The securities regulator has asked 27 listed companies to comply with the mandatory provision of holding a minimum of 30-per cent shares jointly by their sponsor-directors within a month.
The Bangladesh Securities and Exchange Commission (BSEC) issued the order on Monday and forwarded it to the managing directors of the companies.
"…you are instructed to comply with the notification within one month. Otherwise, the commission will take necessary legal action in compliance with the directive," reads the order.
Asked, BSEC spokesperson Mohammad Rezaul Karim said the companies will not be allowed to take more than one-month time to comply with the provision.
"The BSEC may restructure the boards of the companies, appoint independent auditors upon their failure in this regard," he said.
The companies include Aziz Pipes, Fu-Wang Foods, Fas Finance, Active Fine Chemicals, Salvo Chemical Industry, Delta Spinners, Central Pharmaceuticals, Appollo Ispat Complex, Information Services Network, Generation Next Fashion, Al-Haj Textile, Olympic Accessories, Shurwid Industries, Fareast Islami Insurance, Pharma Aids, Kattali Textile, Fu-Wang Ceramic, Mithun Knitting, C&A Textile, Familytex, Prime Insurance, Fine Foods, Agni System and Advent Pharmaceuticals.
The sponsor-directors of Aziz Pipes jointly hold 23.93 per cent shares of the company while that of Fu-Wang Foods 9.26 per cent, Fas Finance 13.20 per cent, Active Fine Chemicals 12.04 per cent, Salvo Chemical Industry 22.41 per cent, Delta Spinners 19.24 per cent, Central Pharmaceuticals 25.89 per cent, Appollo Ispat Complex 20.24 per cent, Information Services Network 21.62 per cent, and Generation Next Fashions 13.82 per cent as on October 31, 2021.
Besides, the sponsor-directors of Al-Haj Textile hold 25.63 per cent shares, Olympic Accessories 25.81 per cent, Shurwid Industries 12.01 per cent, Fareast Islami Insurance 24.50 per cent, Pharma Aids 24.22 per cent, Fu-Wang Ceramic 24.69 per cent, Mithun Knitting 17.20 per cent, C&A Textile 22.14 per cent, Familytex 4.02 per cent, Prime Insurance 27.54 per cent, Fine Foods 6.38 per cent, Agni Systems 23.81 per cent and Advent Pharmaceuticals 29.43 per cent as on October 31, 2021.
The securities regulator had issued a directive on December 22 in 2011 setting a mandatory provision of holding minimum two per cent shares individually by the sponsor-directors of the listed companies.
Another mandatory provision was to hold minimum 30 per cent shares jointly by the sponsor-directors of the listed companies.
The sponsor-directors of 27 listed companies failed to comply with the mandatory provision of holding minimum 30 per cent shares jointly within a set timeframe that ended on December 9, 2020.
Finally, the securities regulator on Monday gave the one-month ultimatum to comply with the provision of holding 30 per cent shares jointly.