Proposed changes to Companies Act draw more flak

The proposed amendment to Companies Act 1994 that allows the government to appoint administrators to troubled companies drew further protests from different quarters yesterday.
Dr Kamal Hossain, president of Gono Forum, protested the proposed amendment on the grounds that it would be detrimental to citizen's rights.
The indemnity facility for the appointed administrators suggests that anyone harmed by the officials' actions would not get justice, he said. He urged the government not to bypass stakeholders in the decision-making process.
Bangladesh Malaysia Chamber of Commerce and Industry (BMCCI) also voiced its opposition to the amendment.
“Although we oppose the amendment proposal, we are in support of appointing administrators with court permission to fraudulent multi-level marketing companies or the ones involved in financial irregularities,” BMCCI President Syed Nurul Islam said.
It is not necessary to amend the law as it still permits appointment of administrators -- through court orders -- to any troubled company, the BMCCI chief said in a statement, according to UNB.
The BMCCI believes that there would be no accountability and transparency if there is provision to give indemnity to the administrators.
“Rather, it would create scope for corruption.”
Mir Nasir Hossain, a former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), told the BBC: “The proposed amendment might be misused for political purposes.”
“We have no complaints if the government takes action against the MLM companies, which have illegal transactions,” he said.
Abdus Salam Murshedy, president of the Exporters Association of Bangladesh, reiterated Hossain's views and urged the government to refrain from amending the law.