SEC orders sacking of 17 directors of nine companies

The Securities and Exchange Commission has ordered the sacking of 17 directors from nine companies for their failure to meet within the deadline the conditions on holding minimum two percent shares.

The regulator sent the order to the Registrar of Joint Stock Companies and Firms, the Dhaka and Chattogram stock exchanges, and the Insurance Development and Regulatory Authority on Sunday, said SEC spokesman Mohammad Rezaul Karim.

The law dictates a director of a listed company must have minimum two percent shares of the firm.

The SEC on Jul 2 gave 61 directors of 22 companies 45 working days to fall in line with the law.

As many as 25 of them fulfilled the condition while 19 others resigned from the boards of directors.

The deadline ended on Sep 2, but the regulator gave officials until Sep 15 to report on the issue.

SEC Chairman Shibli Rubayat-Ul-Islam on Friday told bdnews24.com the 17 directors who did not comply with the rules will be removed soon.

Most of the companies where the 17 held director’s position are in the insurance sector.

They are Asia Insurance, Bangladesh General Insurance, Continental Insurance, Dulamia Cotton, Eastern Insurance, Exim Bank, Imam Button, Intech Limited, Karnaphuli Insurance, K&Q, Meghna Life Insurance, Mercantile Insurance, Prime Islami Life Insurance, Progressive Life Insurance, Probhati Insurance, United Air, Fu-Wang Ceramics, Purabi General Insurance, Standard Insurance, WATA Chemicals, Bangladesh National Insurance and Paramount Insurance.