The securities regulator has moved to ensure proper compliance on holding minimum amount of shares of listed companies by the sponsor-directors individually and jointly.
The regulatory move came following the exchanges' list on non-compliance of some companies whose sponsor-directors have failed to hold stipulated amount of shares.
As per the directive issued on November 22, 2011, each director, other than independent ones, of any listed company shall hold minimum two per cent shares of the paid-up capital, while the sponsor-directors jointly will hold 30 per cent shares.
The Bangladesh Securities and Exchange Commission (BSEC) has already asked the bourses and Central Depository Bangladesh Limited (CDBL) to ensure proper compliance in respect of holding 30 per cent shares of listed companies jointly by the respective sponsor-directors.
"…the commission hereby directs the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and CDBL to ensure proper compliance of the condition of maintaining joint-holding of minimum 30 per cent shares of the paid-up capital of the listed company by its all sponsor-directors," said the BSEC directive.
A BSEC official said the listing department of the stock exchanges will look into non-compliance on holding 30 per cent shares jointly by the sponsor-directors of a listed company.
"Besides, the CDBL will identify the companies having less than 30 per cent shares jointly held by respective sponsor-directors. And the sponsor-directors will not be allowed to sell or transfer any shares until acquisition of the aforesaid amount of shares," the BSEC official said.
He, however, said the CDBL took a prolonged time to execute the order issued by the securities regulator.
He also said the enforcement department of the securities regulator has been asked to take action against the non-compliance on holding minimum two per cent shares by sponsor-directors individually.
On November 22, 2011, the securities regulator issued a notification regarding holding minimum amount of shares by sponsor-directors jointly and individually.
According to the notification, all sponsors/promoters and directors of a company listed with any stock exchange shall all time jointly hold minimum thirty per cent shares of the paid-up capital of the company.
In case of non-holding of the said amount of shares, the sponsors/promoters and directors will not be able to sell or transfer any shares until acquisition of the aforesaid amount of shares, the notification said.
And each director, other than independent ones, of any listed company shall hold minimum two percent shares of the paid up capital, otherwise there shall be a casual vacancy of director, according to another condition of BSEC's notification.
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