B Mirror Report: Fareast Finance and Investment Limited, a listed non-bank financial institution, has plunged into a fresh administrative crisis following the resignation of four board members, creating a severe quorum shortage and effectively paralyzing board operations.
The company has formally sought urgent guidance and support from the Financial Institutions and Markets Department of Bangladesh Bank. It has also informed the Bangladesh Securities and Exchange Commission (BSEC) about the situation, describing the institution’s condition as “extremely critical.”
According to company sources, Fareast Finance has been struggling with continuous losses since 2017 and was downgraded to the ‘Z’ category on the stock market in 2018. In an effort to restore corporate governance and financial discipline, BSEC dissolved the previous board on March 29, 2021, and appointed a restructured board comprising former bureaucrats, professionals, and independent directors. However, less than four years later, that board has also effectively collapsed.
The crisis intensified after BSEC-nominated Chairman and former Senior Secretary Md Ashraful Makbul resigned on December 10 last year. Independent Director Sheikh Nazmul Haque Soikat stepped down the following day. The latest blow came on May 4 this year when Independent Director Ehsanul Aziz and Dhaka University Professor Dr. Md Mosharraf Hossain resigned. Their resignation letters were received by the company on May 5.
Following the departures, only one director now remains on the board.
Under the company’s articles of association, at least five directors are required to form a quorum for board meetings. As a result, holding board meetings has become nearly impossible, creating complications in loan restructuring, deposit management, approval of financial statements, audit activities, and implementation of regulatory directives.
In its letter to Bangladesh Bank, Fareast Finance warned that without immediate intervention and direction, the institution’s normal operations could be severely disrupted.
Sector insiders say the company has long struggled to recover due to weak financial health, a high volume of defaulted loans, and persistent management challenges. The collapse of the board has now added fresh uncertainty over the company’s future.
Fareast Finance and Investment Limited was listed on the stock exchange in 2013. The ‘Z’ category company has a paid-up capital of Tk 650.23 million, with a total of 65.02 million shares.
As of April 30, 2026, sponsor-directors held 39.75 percent of the company’s shares, institutional investors owned 12.41 percent, and general investors held 47.85 percent.
