Commerce ministry dusts off companies law draft

The commerce ministry is set to resume work on amending the Companies Act 1994, after it ran into a dead end last year over the proposed enhanced role of administrators.
“The law needs to be amended to make it time-befitting. There will be a lot of changes,” Commerce Secretary Mahbub Ahmed told The Daily Star yesterday. He said a meeting in this regard has already been called for August 18.
The ministry proposed indemnity and liquidation powers for administrators appointed in troubled companies like the controversial Destiny Group, a suggestion that was met with much protest from the country's business community.
The government is now preparing a separate multilevel marketing (MLM) law for companies like Destiny Group which have illegal money transactions and cheat people, said a senior official of the ministry. The MLM law is now sitting with the law ministry for its vetting.