A writ petition has been filed with the High Court challenging the legality of the government initiative to merge five troubled private banks without ensuring any protection for the shareholders' interests and without issuing any shares to the existing general shareholders in the new institution.
Md Shahidul Islam, a shareholder investor in several securities, including First Security Islami Bank, filed the petition on Tuesday.
He sought a High Court directive to formulate protective measures and ensure adequate steps to issue shares to the general shareholders, including himself, in the proposed Sammilito Islami Bank as per their shareholding in First Security Islami Bank, Union Bank, Global Islami Bank, Social Islami Bank, and EXIM Bank.
The petition also sought a rule asking the government bodies concerned to explain why their initiative to merge the five banks without ensuring any protection for the shareholders' interest and without issuing any shares to the existing general shareholders should not be declared illegal.
The rule should also seek explanations for why the government bodies should not be directed to formulate protective measures and then issue shares to the general shareholders, including the petitioner, in the unified bank as per their shareholding in the five banks.
The finance secretary, the Bangladesh Bank governor, the Bangladesh Securities and Exchange Commission (BSEC) chairman, and the chairmen of the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) were made respondents in the petition.
Barrister Sayed Mahsib Hossain, a counsel of the petitioner, said, "The right to hold property and that to do business are inalienable rights of my client under the constitution of the country."
He said, "The general investors, like my client, have purchased the shares of the said banks. The shares are traded in the securities market, but the government, without issuing any shares to my client in the proposed new bank, has taken steps to merge the banks.
"This amounts to a violation of my client's fundamental rights. That is why he seeks a directive upon the government to allocate shares for him in the new bank."
The petition may be heard by a High Court bench on Wednesday (today), said the lawyer.
Earlier, on 9 October, the advisory council of the interim government approved the proposal for merging the five banks.
The plan is to form a new Shariah-based bank by combining the five.
Two names have been proposed for the new entity - United Islamic Bank and Sammilito Islami Bank. According to officials, the new bank will operate on commercial and professional principles.
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