Biman goes PLC

National flag carrier Biman Bangladesh Airlines has turned into a public limited company Monday, according to the registrar of Joint Stock Companies and Firms. "It has already been turned into a public limited company under the Companies Act 1994. I have handed over the certificate today," Dr Mahfuzul Haque, the registrar, told bdnews24.com. He said he handed the approval documents to Biman's managing director Dr Md Abdul Momen. Haque is also the chief controller of insurance. From now, the national airlines will be known as Biman Bangladesh Airlines Ltd instead of Bangladesh Biman Corporation, which had been haemorrhaging money for years on end.

bdnews24.com
Published : 23 July 2007, 01:52 AM
Updated : 23 July 2007, 01:52 AM
Dhaka, July 23 (bdnews24.com) - National flag carrier Biman Bangladesh Airlines has turned into a public limited company Monday, according to the registrar of Joint Stock Companies and Firms.
"It has already been turned into a public limited company under the Companies Act 1994. I have handed over the certificate today," Dr Mahfuzul Haque, the registrar, told bdnews24.com.
He said he handed the approval documents to Biman's managing director Dr Md Abdul Momen.
Haque is also the chief controller of insurance.
From now, the national airlines will be known as Biman Bangladesh Airlines Ltd instead of Bangladesh Biman Corporation, which had been haemorrhaging money for years on end.
The airline starts its journey with only Tk 700 in paid-up capital and the authorised capital is set to be Tk 15000 crore, according to the registrar.
The latest effort comes after Biman posted a record loss of more than $120 million in the year to June 2006 on higher-than-expected fuel and maintenance costs, despite cutting eight loss-making international flights and four domestic routes.
Early this month, the president issued an ordinance to transform Bangladesh Biman Corporation in to a public limited company.
"They will now sign a vendor agreement to transfer corporation's all liabilities to the newly formed company," said Haque.
A senior official at the Ministry of Civil Aviation and the Biman managing director will sign the agreement.
"I think it will take some days to complete all the procedures," he said.
Seven members will sit on the Biman board of directors headed by cabinet secretary Ali Imam Majumder.
The others are Sheikh Altaf Ali, civil aviation secretary, AMM Nasir Uddin, energy secretary, Firoz Ahmed, commerce secretary, Dr Muhammad Tareque, finance secretary, Md Touhid Hossain, acting foreign secretary, and Md Fakhrul Islam, civil aviation joint secretary.
Momen, the Biman MD, will act as the chief executive officer of the newly-transformed company.
He was not immediately available for comment.
Biman started its sojourn in January 1972 with a vintage Dakota DC-3 aircraft, less than a month after the country won independence.
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