The Chamber Judge of the Appellate Division stayed Wednesday the High Court (HC) judgment that declared a day before on Tuesday the posts of eight directors of Pubali Bank Ltd (PBL) 'vacant'.
In response to a petition of the eight directors, the Chamber Judge Justice Hasan Foez Siddique stayed the HC judgment till Sunday next, and set the day for hearing in the full bench of the Supreme Court (SC).
Following the stay order, now there is no legal bar for the directors in question to continue their banking activities as directors, a lawyer said.
"The HC judgment will actually remain stayed till further hearing on the matter in the SC full bench," another lawyer 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.
Earlier on Tuesday, a Company Bench of the HC of Justice Md Rezaul Hasan in a judgment declared their posts vacant for not having the required 2.0 per cent shares each in the bank.
The mandatory 2.0 per cent share-holding requirement was imposed by the Bangladesh Securities and Exchange Commission (BSEC) in 2011.
Advocate Salahuddin Ahmad appeared for the directors in the court while Advocate Akhtar Imam and Advocate Reshad Imam stood for the bank and Advocate Rafique-ul Huq for a shareholder.
"The counsels of the bank placed their arguments in favour of the stay order," Mr Reshad Imam told the FE.
The eight directors moved the HC against the bank's election commission's decision that declared them disqualified on August 14, 2013 to contest the posts of director at an Annual General Meeting (AGM).
The election commission took the decision as each of the directors 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 decision, and sought explanation as to why its 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 in the matter, the HC bench delivered the judgment Tuesday last declaring their election as directors illegal and subsequently their posts vacant.
