BSEC asks Progressive Life Ins to address anomalies

The securities regulator has asked the board of Progressive Life Insurance Company to address existing anomalies and make the company viable.
The regulatory instruction came on Wednesday during a meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC).
The meeting, chaired by BSEC Chairman Prof Shibli Rubayat Ul Islam, was attended by the existing board members of the insurer, including newly nominated independent directors.
"The company's board has been asked to remove anomalies along with fixing action plans to make the operations viable," said Mohammad Saifur Rahman, a BSEC executive director.
He said the board has been tasked with overcoming the obstacles hindering the company's progress.
The Wednesday's meeting took place against the backdrop of disputes between the existing and former board members.
Meanwhile, the securities regulator conducted an investigation into various irregularities that took place within the company.
As per the BSEC findings, the financial disclosures did not accurately reflect the company's actual scenario. The company also failed to comply with various provisions of accounting standards.
Progressive Life Insurance Company did not hold annual general meetings (AGMs) for the years 2020-22, and the financial statements for these years were not published.
The BSEC inquiry committee also identified serious irregularities in the company's acquisition of fixed and other assets.
"…the irregularities were reflected in the financial statements, misleading the investors," according to the inquiry report.
No information regarding the financials of the non-performing company, Progressive Life Insurance Company, is available on the website of the premier bourse.
On Wednesday, the company made a disclosure regarding changes in the post of the company secretary and chief executive officer.
Md Abdul Karim, the head of policy servicing, has been appointed as the acting company secretary, replacing the existing one.
Shahjahan Azadi, the deputy managing director, has been appointed as the acting chief executive officer, replacing the existing one.
Progressive Life Insurance, currently a 'Z' category company, was listed on the bourses in 2006. As of June 30, its sponsor-directors hold 38.82 per cent of shares, institutions hold 10.75 per cent and general investors hold 50.43 per cent.

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