HC declares 8 posts of PBL board vacant

FE Report | Published: February 26, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

The High Court (HC) declared Tuesday the posts of eight directors of Pubali Bank Ltd (PBL) including its chairman 'vacant' for not having the required 2.0 per cent shares each in the bank, lawyers said.
The eight directors are Hafiz Ahmed Mazumder, Muhammad Faizur Rahman, Ahmed Shafi Choudhury, Muhammed Kabiruzzaman Yaqub, Fahim Ahmed Faruk Chowdhury, Mrs Suraiya Rahman, Azizur Rahman and Ms Rumana Sharif. Mr Hafiz Ahmed Mazumder is the chairman of the board of directors of the bank.
The mandatory 2.0 per cent share-holding requirement was imposed by the Bangladesh Securities and Exchange Commission (BSEC) in 2011.
A single bench of the HC in a judgment came up with the order rejecting a 'Company Matter' filed by the directors.
Until filing of this report at about 7:00 pm, the petitioners didn't instruct their lawyers to lodge appeal against the HC judgment. "We are yet to get any instruction on the issue of appeal," Barrister Mohammad Mehedi Hasan Chowdhury, one of their counsels, told the FE.
The directors in question filed the 'Company Matter' with the HC challenging the bank's election commission's decision to declare them disqualified for contesting the posts of director at an Annual General Meeting (AGM), lawyers concerned said.
The election commission took the decision as each of the director in question didn't have the requisite 2.0 per cent shares in the bank in accordance with the BSEC's notification, a lawyer said.
While admitting 'Company Matter,' the HC on August 20, 2013 stayed the election commission's (EC) decision. At the same time, the HC sough explanation as to why the EC's decision should not be declared illegal.
Following the HC stay order, the eight shareholders of the bank contested for the posts and were elected directors on the following day, the lawyers said.
After holding final hearing on the matter, the HC bench of Justice Md Rezaul Hasan delivered the judgment dismissed their 'Company Matter' Tuesday.
"With the HC judgment, the decision taken by the bank's election commission was upheld," they said.
Sheikh Fazle Noor Taposh MP and AKM Rabiul Hasan also stood up for the petitioners while Barrister Akhtar Imam, Reshad Imam and Ramzan Ali Shikder appeared for the bank, Advocate Probir Neogi argued for the BSEC and Barrister Mahbub Uddin Khokon for a bank shareholder.
The BSEC on November 22 in 2011 imposed the mandatory provision for the sponsor-directors, other than the independent ones, for holding individually, at least, 2.0 per cent of their companies' paid-up capital.
During the hearing on the rule, one of the contentions was: as the BSEC's notification is not applicable for the independent directors, petitioners' lawyer argued that the directors elected from the shareholders are not required to hold the 2.0 per cent shares as mandatory.
After the HC judgment, two lawyers told the FE that the confusion was created as the BSEC in its notification imposed the provision for the sponsor-directors, not the independent ones.
However, Tuesday's judgment said that the "BSEC provisions are applicable for all the directors except the independent and nominated directors," Mr Mehedi Hasan Chowdhury said.