BRTC shares to go public; bill passed
The Bangladesh Road Transport Corporation Bill, 2020 was passed in the parliament today -- aimed at offloading 49 percent shares of the corporation in the capital market.
In the bill, a new provision has been incorporated among the functions of BRTC that it will render transport services during emergency situations like hartal, blockade, transport strike, national disaster, Bishwa Ijtema, freedom fighters' rally etc.
Road Transport and Bridges Minister Obaidul Quader placed the bill in the House which was passed unanimously by voice votes.
According to the proposed law, the government will own 51 percent shares while 49 percent will be offloaded for the public.
The bill was placed to update an ordinance promulgated in 1961, keeping a provision to offload the shares of BRTC in the capital market.
The authorised capital of the BRTC will be Tk 1,000 crore which will be divided into 100 crore general shares with Tk 10 base price. The authorised capital of the corporation under the existing law is only Tk 6 crore.
The paid-up capital of the corporation is Tk 3 crore in the existing law. Its amount has not been fixed in the proposed law as the BRTC annual general meeting or special general meeting will fix the amount of the paid-up capital but it can't exceed the amount of the authorised capital.
There will be a 23-member board of directors instead of the existing 11-member one. These directors will come from Local Government Division, Cabinet Division, Finance Division, Road Transport and Highways Division, Public Security Division, Shipping Ministry, Dhaka Transport Coordination Authority, Roads and Highways Department, representatives from the shareholders and one member from every administrative division.
If the amount of shares of the public is from 20 to 34 percent of the paid up capital then there will be one director from the shareholders while the number will be two if the shares of the public is from 34 to 49 percent.
The board of directors will hold at least four meetings per year.
According to the proposed law, the Corporation can form one and more companies taking prior permission from the government.