The High Court has summarily rejected a writ petition challenging the legality of the government initiative to merge five troubled private banks without ensuring any protection for the shareholders' interest and without issuing any shares to the existing general shareholders.
The High Court bench of Justice Fahmida Quader and Justice Md Ashif Hasan passed the order on Monday after a primary hearing on the petition.
Md Shahidul Islam, a businessman involved with the capital market and a shareholder investor of First Security Islami Bank, filed the petition on November 18 this year.
Barrister Sayed Mahsib Hossain appeared in the hearing on behalf of the petitioner, while Additional Attorney General Mohammad Arshadur Rouf and Deputy Attorney General Mohammad Shafiqur Rahman represented the state.
The counsel for the petitioner tried to convince the court by asserting that the Bangladesh Security and Exchange Commission (BSEC) had earlier sent a letter to the Bangladesh Bank governor, requesting him to ensure the protection of general shareholders.
On the other hand, the lawyer for the state, Mohammad Arshadur Rouf, said the Bangladesh Bank had already taken initiatives to protect the interest of the general shareholders by accepting a regulation.
Upon hearing the parties, the High Court decided not to issue any rule on the matter and rejected the petition.
The petitioner's lawyer said they might file an appeal with the Appellate Division against the High Court order.
The petitioner sought a High Court directive to formulate protective measures and ensure adequate steps to issue shares to the general shareholders, including himself, in Sammilito Islami Bank as per their shareholding in First Security Islami Bank, Union Bank, Global Islami Bank, Social Islami Bank, and EXIM Bank.
He also prayed to the court to issue a rule asking the government bodies concerned to explain why their action to merge the five banks without ensuring any protection to the shareholders' interest and without issuing any shares to the existing general shareholders should not be declared illegal.
On October 9 this year, the Advisory Council of the interim government approved the proposal to merge the five banks.
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