The Appellate Division of the Supreme Court on Tuesday cleared the way for nine independent directors appointed by the Bangladesh Security and Exchange Commission (BSEC) for Beximco Limited, Beximco Pharmaceuticals, and Shinepukur Ceramics to resume their duties.
The Appellate Division stayed for three weeks the High Court orders that had, on January 15 this year, halted a BSEC decision to appoint the independent directors.
The apex court also directed the High Court bench concerned to dispose of the rules issued on January 15 questioning the legality of the BSEC decision of appointing independent directors within March 19.
A four-member bench of the Appellate Division, headed by Chief Justice Syed Refaat Ahmed, passed the orders following three separate leave-to-appeal petitions filed by BSEC seeking a stay on the High Court orders.
Barrister Abul Kalam Azad who appeared in the court hearing representing the BSEC told the FE that there is no legal bar for the independent directors to join their positions following the SC order passed on Tuesday as it revives the BSEC appointment again.
The BSEC appointed nine independent directors to the three listed companies on December 31 last year, following a directive from the Financial Institutions Division (FID) under the Finance Ministry.
According to Section 16 of the Bangladesh Security and Exchange Commission Act 1993, the government can give any instruction to the BSEC for the interest of the common investors, said Barrister Azad, adding that the government instructed the BSEC following the law and the BSEC did not violate any law by adopting the government instruction.
Challenging the BSEC decision, three companies - Beximco Ltd, Beximco Pharmaceuticals and Shinepukur Ceramics - filed three separate writ petitions. Upon hearing the petitions, a High Court bench on January 15 stayed the BSEC appointment and issued a rule.
Later BSEC filed three petitions against the High Court orders. Upon hearing on the petitions, the apex court stayed the High Court orders.
Earlier, the FID reportedly directed the BSEC to appoint independent directors to the Beximco companies based on recommendations from an Advisory Council Committee formed by the government to address issues related to Beximco.
The decision was made during a meeting in December last that focused on labour and business conditions at the Beximco Industrial Park.
Following the arrest of Beximco Group Vice Chairman Salman F Rahman, the companies faced significant challenges, including labour unrest that spilled onto the streets.
In response, the government decided to appoint independent directors from diverse professional backgrounds.
Attorney General Md Asaduzzman in his personal capacity also represented the BSEC, while Barrister Fida M Kamal and Barrister Kamal Ul Alam appeared for Beximco, Beximco Pharmaceuticals, and Shinepukur Ceramics.
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