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The securities regulator has restructured the board of directors of Simtex Industries, a sewing thread and yarn dyeing producer, by appointing new chairman and four independent directors.
The Bangladesh Securities and Exchange Commission (BSEC) issued a directive in this regard on Thursday with immediate effect.
The stock market regulator appointed Lieutenant General (Retd) Sheikh Mamun Khaled as chairman of Simtex.
Four new independent directors are Shobod Deb Nath, associate professor at the University of Dhaka; Kawser Ahmed, partner, The Zurist in Dhaka; Dr Md Abdul Kaium, associate professor at the University of Barishal, and business entrepreneur Abid Al Hasan.
The BSEC also removed existing two independent directors Md Akram Hossain and Shah Md Asad Ullah and one nominated director Sharif Shahidul Islam.
Simtex Industries was listed on the bourses in 2015 by raising Tk 600 million from the public. It issued 30 million ordinary shares at Tk 20 each share at a premium of Tk 10.
The company's share closed at Tk 14 on Thursday.
In August last year, former chairman of Simtex Lieutenant Colonel (Retd) Md Anisur Rahman filed a complaint against his business partner Siddiqur Rahman - founder of the company -with the BSEC over conflicts linked to the company's management.
He alleged that he was removed from the post of chairman for protesting against illegal and unethical activities, and even received death threats.
On receiving his [Anisur Rahman] complaint, the BSEC formed an inquiry committee that found internal conflict and financial miss-match.
The committee reported that the company had failed to present proper documents against expenses, a BSEC official told the FE wishing not to be named.
The company saw a massive year-on-year decline in its revenue and profit in the FY20. Its revenue dropped 18 per cent to Tk 1.19 billion while profit tumbled 71 per cent to Tk 44 million.
However, profit rose 65 per cent year-on-year to Tk 73 million in the FY21. The profit growth then slowed down in the FY22 to only 5 per cent to Tk 77 million.
In the first half of the FY23, its revenue rose 20 per cent to Tk 787 million and profit increased by 6 per cent to Tk 36 million.
Company Secretary Ashis Kumar Saha could not be reached over the phone despite repeated attempts.