The commission decided that approval for the reappointment of existing independent directors will now be granted upon receiving an updated clean Credit Information Bureau (CIB) report from Bangladesh Bank.
The Bangladesh Securities and Exchange Commission (BSEC) has decided to enforce strict legal action against listed companies failing to deposit declared final cash dividends into separate bank accounts prior to their Annual General Meetings (AGMs).
The decision was made during the regulator’s commission meeting, presided over by BSEC Chairman Masud Khan, today (13 October).
Under existing regulatory directives, listed companies proposing an annual cash dividend must transfer the entire declared sum into a dedicated, separate dividend bank account at least one day before their AGM.
Companies are also required to obtain a bank certificate validating the deposit, which must be certified by the managing director, chief financial officer, and company secretary, before submitting it to stock exchanges and presenting it to shareholders at the AGM.
Observing recent non-compliance with these rules, the BSEC resolved to take punitive measures against defaulting companies under applicable securities laws.
Furthermore, BSEC decided to amend the existing directive to explicitly mandate that no dividend proposal can be presented at an AGM without first depositing the full amount into a separate account and securing the requisite bank certificate.
In a parallel move to simplify administrative procedures in line with the Corporate Governance Code, 2018, the capital market watchdog streamlined the appointment and reappointment framework for independent directors.
The commission decided that approval for the reappointment of existing independent directors will now be granted upon receiving an updated clean Credit Information Bureau (CIB) report from Bangladesh Bank.
Additionally, if an independent director was previously granted an exemption or relaxation regarding qualification and experience criteria under the conditions of the Corporate Governance Code, that waiver will now automatically apply to new appointments in other listed firms or reappointments in the same company, eliminating the need to seek fresh approval.
Source: The Business Standard
Read More at: csslbd.net
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