• Friday, April 25, 2014

Eight candidates to vie for DSE polls

Star Business Report

Eight shareholders of Dhaka Stock Exchange have submitted their nomination papers to contest for posts of four directors of the premier bourse.
The DSE will hold an election on February 12 to select four directors from the bourse's existing shareholders in line with the demutualisation scheme, officials said yesterday.
A contestant can withdraw his or her nomination from the directorial polls between January 26 and 30.
On February 13, an annual general meeting will be held to adopt the newly-elected directors and hand over the charges to the newly-formed board of the DSE.
Along with the four directors, a 13-member new board will be formed for the demutualised stock exchange. The remaining nine directors will include seven independent directors, one from strategic investors' category and the bourse's chief executive officer, who would have voting rights.
The independent directors will be selected based on the 'fit and proper' criteria mentioned in the demutualisation scheme, which was approved by the Bangladesh Securities and Exchange Commission on September 26 last year.
Prior to holding the AGM, the DSE will have to send a list of independent directors to the BSEC for regulatory approval.
The tenure of each director and the chief executive officer will be for three years.
A law on demutualisation was passed in parliament on April 29 last year with a promise to bring transparency to the stockmarket.
Demutualisation is a way of separating the management of the bourses from the ownership. It transforms a stock exchange into a profit-oriented company owned by shareholders and ensures alternative business models and operational efficiency.
Bangladesh's stock exchanges were non-profit cooperative organisations owned by the exchange members who are usually stockbrokers.

Published: 12:00 am Thursday, January 23, 2014

Last modified: 12:12 am Friday, January 24, 2014

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