1,100 sponsor-directors have less than 2pc shares

FE Report Around 1,100 sponsor-directors of listed the companies have less than two per cent shares compared to their companies' total paid-up capital, officials said. The status of shareholding by sponsor-directors comes after the prime bourse - Dhaka Stock Exchange (DSE) - has sought report from the companies relating to their sponsordirectors' position in this connection. A total of 202 listed companies submitted the shareholding portions of 2,519 sponsordirectors to the DSE. As per DSE calculation, among these shareholders, about 1,100 own less than two per cent shares. The DSE has taken the move in line with a directive recently issued by the Securities and Exchange Commission (SEC), which made holding of at least 30 per cent stakes of a listed company by its sponsor-directors mandatory. As per the SEC directive, individually each of the directors of a listed company, other than the independent director(s), must hold a minimum of two per cent stake in of the company's total paid-up capital. The sponsor-directors will have to fulfil the required volume of shares within six months of publishing the gazette the notification. The DSE officials said, a total of 202 listed companies have submitted their shareholding status by the deadline set on November 11 this year. The remaining 30 companies are yet to submit their reports to the DSE. As per data analysed by the DSE, the sponsor-directors of 34 companies hold less than 30 per cent shares compared to the total paid-up capital.