B Mirror Report : The regulator has taken strict action after no board meetings were held for a prolonged period at three major Beximco Group companies listed on the stock market Beximco Limited, Beximco Pharmaceuticals, and Shinepukur Ceramics Limited. The Bangladesh Securities and Exchange Commission (BSEC) has instructed all directors, managing directors, chief financial officers (CFOs), and company secretaries of these companies to convene board meetings on an emergency basis. The order issued by the Commission must be implemented within the next 12 working days.
Due to the continuous absence of board meetings, the normal institutional operations of these three companies have come to a standstill. As a result, legally required processes such as the declaration of long-awaited dividends for investors, holding annual general meetings (AGMs), and making strategic business decisions have been stalled. It is learned that the Commission has taken this emergency intervention to ensure the financial security of general investors and to uphold corporate governance.
In an order published last Thursday (15 January), the BSEC stated that the concerned companies had shown extreme failure in submitting their audited financial statements for the financial year ended 30 June, as well as the quarterly reports for the current year. According to information from the Dhaka Stock Exchange (DSE), Beximco Limited and the other two companies have not yet provided any financial information. Such secrecy and irregularities have caused a major erosion of investor confidence.
Explaining the reasons behind the special measures taken against these Beximco Group companies, BSEC spokesperson Abul Kalam said that a legal dispute over the appointment of independent directors had been ongoing and that there was a stay order from the High Court. Recently, the Appellate Division lifted that restriction, reactivating the Commission’s authority. Consequently, a specific deadline has been set for these three companies to hold board meetings.
The spokesperson further confirmed that, in accordance with the law, the Commission is also taking action against other non-compliant companies. Various administrative measures, including the phased reconstitution of boards, are being implemented to restore discipline in the market. However, market analysts note that the nominal fines imposed on board members for failing to submit reports are far too insignificant compared to what is required, and in many cases these penalties are imposed only after several years.
The most concerning issue is that a large portion of these fines remains unpaid for a long time. To recover this money, the Commission has to pursue certificate cases for years, during which the government ends up spending substantial funds simply to conduct the cases. As a result, restoring transparency in the stock market and protecting investors’ interests has become a major challenge without strict and immediate enforcement of the law.
