Appoint at least one female member

FE Report

The draft of Corporate Governance Guidelines has included the provision of appointing at least one female member in the company's board of directors.

The regulatory provision came as part of enhancing women's participation in the board affairs of the listed companies.

"At least one member of the board of directors shall be a female who shall be qualified as a shareholder director or an executive director or an independent director," said the draft of Corporate Governance Guidelines.

Presently, there is no mandatory provision of appointing female director in the company's board of directors.

The Bangladesh Securities and Exchange Commission (BSEC) has sought public opinion on its draft of Corporate Governance Guidelines.

After getting public opinion, the securities regulator will finalise the Corporate Governance Guidelines.

As per the draft, the number of the board members of the company shall not be less than five and more than 20.

"At least one fifth and not more than two third of the total number of directors in the company's board shall be independent directors,"

said the draft of Corporate Governance Guidelines.

In case of nomination of each director in the board, nominating shareholder who may be an individual or an institution or government shall hold at least five percent shares of the paid up capital of the company, and such nominating shareholder shall not nominate director(s) in the board exceeding the proportion of his category in the total shareholdings, according to the draft of Corporate Governance Guidelines.

"Each director other than independent director and executive director shall hold a minimum percentage of shares of the paid up capital of the company as determined by the Commission from time to time."

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