SC stays HC judgement

The Chamber Judge of the Appellate Division stayed Thursday the High Court (HC) judgement that declared 'illegal' the securities regulator's notifications on mandatory holding of 2.0 per cent shares by each of the sponsor-directors at the listed companies the previous day (Wednesday).
Chamber Judge Justice Hasan Foez Siddique also fixed May 22, 2014, for hearing on the matter at the regular bench of the Appellate Division of the Supreme Court (SC).
The order came following two separate civil miscellaneous petitions (CMP) for leave-to-appeal filed by the Bangladesh Securities and Exchange Commission (BSEC) and the NCC Bank authorities against the HC judgement.
Earlier on Wednesday, the HC bench comprising Justice Dr Quazi Reza-Ul Hoque and Justice ABM Altaf Hossain delivered the judgement making its earlier rule 'absolute' upon a writ petition filed by Mostafizur Rahman, NCC Bank's sponsor-shareholder.
Attorney General Mahbubey Alam and former law minister Shafique Ahmed, stood for the BSEC in the court, while Senior Advocate AJ Mohammad Ali and Advocate Shah Mohammad Ahsanur Rahman argued for Mostafizur Rahman, and Advocate Sheikh Fazle Noor Taposh MP and Advocate Mehedi Hasan Chowdhury appeared for the bank authorities.
The lawyers for BSEC and NCC Bank argued, among others, before the court that a number of writ petitions on such a legal matter were earlier rejected and accordingly settled. So, now there is no need for a new decision in this connection.
In 2012, two separate HC benches, one presided over by the then HC judge Justice Hasan Foez Siddique, rejected a number of writ petitions regarding the BSEC's notifications and Section 2CC of the Securities and Exchange Ordinance-1969, under which the securities regulator issued the notifications, as per the petitions.
In its CMP, the BSEC said, "The High Court Division committed an error in making the rule absolute inasmuch as the High Court Division failed to appreciate that after issuance of the above notifications, capital market has become stable and thus position of small investors has become more reliable and secure."
Quoting their argument, lawyers of Mostafizur Rahman, however, submitted that as Justice Hasan Foez Siddique earlier heard the matter and passed judgement in this connection (at the HC), he cannot further hear it and/or pass order over the issue, Advocate Ahsanur Rahman said.
After hearing both the parties, the Chamber Judge stayed Wednesday's HC judgement and set May 22 the next day for hearing at the regular bench of the Appellate Division.
In Wednesday's judgement, the HC declared 'illegal' two particular clauses -- d and e -- of the notification issued by the BSEC on November 22 in 2011.
Clause "d" of the notification made it mandatory for each the sponsor-directors, other than the independent ones, to hold individually shares worth, at least, two per cent of his/her company's paid-up capital. "Otherwise there shall be a casual vacancy of director," it said.
"In case of the aforesaid casual vacancy of director, any individual holding five per cent or more shares of the paid-up capital shall be entitled to be a director in the next Annual General Meeting (AGM)," as per its clause "e".