• Tuesday, July 29, 2014

SC stays order on 2pc share rule for directors

Star Business Report

The Supreme Court yesterday stayed a High Court verdict that scrapped a provision imposed by Bangladesh Securities and Exchange Commission for sponsor-directors to individually hold at least 2 percent shares in listed companies.
Chamber judge of the Appellate Division Justice Hasan Foez Siddique passed the order after a brief hearing on a petition filed by the securities regulator seeking stay on the HC verdict.
The chamber judge also set May 22 for hearing the stay petition before the full bench of the apex court.
Following a writ petition, the HC on Wednesday declared illegal the BSEC provision for sponsor-directors to individually hold at least 2 percent shares in listed companies.

The HC bench of Justice Quazi Reza-Ul Hoque and Justice ABM Altaf Hossain had observed that the provision superseded Banking Companies Act 1940 that governs the banking sector.
The stockmarket regulator yesterday filed the stay petition with the SC, saying that it will file a leave to appeal petition with the apex court after getting the full judgment of the HC.
Attorney General Mahbubey Alam appeared for the BSEC.
Mostafizur Rahman, a sponsor shareholder of NCC Bank, had filed the writ petition with the HC in December 2012 challenging the legality of a notice issued by the regulator on November 22, 2011. The notice made it compulsory for sponsors, directors and promoters of listed companies to hold at least 2 percent stakes individually in their own companies.

Published: 12:00 am Friday, May 16, 2014

Comment Policy