The representatives of publicly listed companies have urged the securities regulator to amend some provisions of corporate governance guidelines to avoid contradiction with the rules of other regulator.
The representatives of Bangladesh Association of Publicly Listed Companies (BAPLC) made some proposals on Wednesday at a meeting held with top bosses of the Bangladesh Securities and Exchange Commission (BSEC).
BAPLC president Azam J Chowdhury said the securities regulator has agreed to review their proposals regarding amendment of some provisions of corporate governance guidelines.
The corporate governance code of the BSEC said the managing director (MD) and/or chief executive officer (CEO) of a listed company shall not hold the same position in another listed company.
The BAPLC representatives told the BSEC that a business group having many listed companies has to spend enough money for appointing MDs for individual companies.
"The appointment of individual MDs and CEOs for listed companies of same business group is unrealistic," BAPLC president Azam J Chowdhury told the FE.
He said the listed companies of same business group and same sponsor-directors should be allowed to appoint one MD for more than one company to reduce the expenditure.
The BAPLC representatives said the guidelines of the central bank have the provision of forming three committees such as executive, audit and risk management.
On the other hand, the BSEC has set the provision of forming two committees such as audit and nomination and remuneration committee.
"We have proposed to amend the corporate governance code to avoid such contradiction with the rules of other regulators," Chowdhury said.
He said the securities regulator should set identical guidelines to ease the operations of listed companies.
The BAPLC president also said the corporate governance guidelines have set the provision of including many disclosures in the directors' report.
"Such provision is also unrealistic as the company's annual reports include much disclosures," Chowdhury added.
BSEC chairman professor M Khairul Hossain and commissioners were present at the meeting.
The President of BAPLC also appreciated and thanked the Commission for allowing publishing of the Annual Reports of the Public Listed Companies (PLCs) on their respective websites and sending through e-mail, which was a long-awaited demand of the Association.
This measure will save substantial printing costs, which can then be transferred to the shareholders via dividends from the savings made and also support the Sustainable Development Goals (SDGs), particularly, better greening of the planet.
Anis A. Khan, Vice President, BAPLC and Managing Director & CEO of Mutual Trust Bank Limited (MTB), EC Members Gulam Rabbani Chowdhury, Managing Director, Baraka Power Ltd, Riad Mahmud, Managing Director, National Polymer Ind. Ltd, Syed Farhad Ahmed, Managing Director & CEO, Aamra Technologies Ltd, Engr. Md. Abu Noman Howlader, Chairman, Bangladesh Building Systems Ltd, Shahriar Ahmed, Managing Director Apex Foods Ltd. and Md. Amzad Hossain, Secretary-General of BAPLC were also present at the meeting.
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