Akbar Ali Khan backs separate corporate watchdog
Sunday, 12 August 2007
A separate regulatory body is needed to oversee companies' compliance with corporate governance guidelines, speakers said at a seminar Saturday, reports bdnews24.com.
Former caretaker government adviser Akbar Ali Khan proposed a new commission to enforce corporate governance among companies and firms.
Chairman of the Securities and Exchange Commission Faruque Ahmed Siddiqui backed the proposal raised at the corporate governance seminar in the city.
"Although there are many agencies to supervise corporate firms, they are not very effective," he said.
"It would be better if the Office of the Registrar of Joint Stock Companies and Firms is merged with another agency," Siddiqui said.
Speaking of company laws, Khan said: "Good governance cannot be established in corporate firms with such weak laws. An amendment to the 1990 Companies Act is necessary to ensure transparency and accountability."
There were many obstacles to good corporate governance in Bangladesh, the speakers said. Self-interest, unethical activities for profit, and company executives depriving shareholders of dividends, were some of the problems that came up at the seminar.
"Many companies under the Securities and Exchange Commission do not hold regular annual general meetings, and deprive the shareholders of dividends," Siddiqui said.
"Stage-managed AGMs are held with hired people attending. We have to come out of this mentality," he said.
Great changes are necessary to establish proper levels of corporate governance, said the SEC chairman. "Efficient directors need to be appointed and the quality of auditing has to be improved," he said.
Khan stressed that good governance cannot be established in corporate firms overnight.
"This is a long process but sitting idle will not help either," he said.
"Businessmen, bankers, lawyers, entrepreneurs all need knowledge on good corporate governance or we will lag behind other countries."
The seminar was organised by the Dhaka Chamber of Commerce and Industry and the Bangladesh Enterprise Institute.
Former caretaker government adviser Akbar Ali Khan proposed a new commission to enforce corporate governance among companies and firms.
Chairman of the Securities and Exchange Commission Faruque Ahmed Siddiqui backed the proposal raised at the corporate governance seminar in the city.
"Although there are many agencies to supervise corporate firms, they are not very effective," he said.
"It would be better if the Office of the Registrar of Joint Stock Companies and Firms is merged with another agency," Siddiqui said.
Speaking of company laws, Khan said: "Good governance cannot be established in corporate firms with such weak laws. An amendment to the 1990 Companies Act is necessary to ensure transparency and accountability."
There were many obstacles to good corporate governance in Bangladesh, the speakers said. Self-interest, unethical activities for profit, and company executives depriving shareholders of dividends, were some of the problems that came up at the seminar.
"Many companies under the Securities and Exchange Commission do not hold regular annual general meetings, and deprive the shareholders of dividends," Siddiqui said.
"Stage-managed AGMs are held with hired people attending. We have to come out of this mentality," he said.
Great changes are necessary to establish proper levels of corporate governance, said the SEC chairman. "Efficient directors need to be appointed and the quality of auditing has to be improved," he said.
Khan stressed that good governance cannot be established in corporate firms overnight.
"This is a long process but sitting idle will not help either," he said.
"Businessmen, bankers, lawyers, entrepreneurs all need knowledge on good corporate governance or we will lag behind other countries."
The seminar was organised by the Dhaka Chamber of Commerce and Industry and the Bangladesh Enterprise Institute.