SEC orders 3 laid-off textile cos to hold EGMs, placate investors
Friday, 23 April 2010
Kayes M Sohel
The securities regulator has ordered three laid-off companies to hold extraordinary general meeting immediately to appease the concerns of their shareholders, its chairman said Thursday.
The companies- Apex Weaving, Monno Fabrics and Modern Dyeing - have shut down their factories over the past six months citing acute natural gas crisis.
Securities and Exchange Commission chairman Ziaul Haque Khondker told the FE that three companies should placate the worries of their tens of thousands of small share-holders.
"The step has been taken to protect shareholders' interest and for the greater well being of the market," Khondker said, adding the companies should hold EGM "as soon as possible".
The SEC also ordered the country's two bourses, Dhaka and Chittagong stock exchanges, where the companies trade their shares to probe the laying-off and submit report within a week, he said.
Khondker said the three companies should provide "the actual picture of their health" through the EGMs, as many other similar companies have rode out the gas crisis.
"The shareholders have the right to know what actually led to the laid-off and what's the future prospects of the companies," he said.
Concurrently, the regulator has asked Titas, the country's leading gas distributor, to find out whether the energy crisis had a hand behind the closures of the companies.
Listed in 1995, Apex Weaving, a major manufacturer of home textiles and bed sheets, declared a sudden shutdown last week, saying its production has dropped significantly due to the gas crisis.
"We have been suffering from inadequate gas pressure over the last 18 months. It has caused us millions of taka in losses," said Harun-Ar-Rashid, chairman of the company.
He said the company has paid its workers over the past six months despite they had to stay idle most of the time due to the worsening gas crunch.
"We'll start production as soon as the gas supply scenario improves," he said.
The securities regulator has ordered three laid-off companies to hold extraordinary general meeting immediately to appease the concerns of their shareholders, its chairman said Thursday.
The companies- Apex Weaving, Monno Fabrics and Modern Dyeing - have shut down their factories over the past six months citing acute natural gas crisis.
Securities and Exchange Commission chairman Ziaul Haque Khondker told the FE that three companies should placate the worries of their tens of thousands of small share-holders.
"The step has been taken to protect shareholders' interest and for the greater well being of the market," Khondker said, adding the companies should hold EGM "as soon as possible".
The SEC also ordered the country's two bourses, Dhaka and Chittagong stock exchanges, where the companies trade their shares to probe the laying-off and submit report within a week, he said.
Khondker said the three companies should provide "the actual picture of their health" through the EGMs, as many other similar companies have rode out the gas crisis.
"The shareholders have the right to know what actually led to the laid-off and what's the future prospects of the companies," he said.
Concurrently, the regulator has asked Titas, the country's leading gas distributor, to find out whether the energy crisis had a hand behind the closures of the companies.
Listed in 1995, Apex Weaving, a major manufacturer of home textiles and bed sheets, declared a sudden shutdown last week, saying its production has dropped significantly due to the gas crisis.
"We have been suffering from inadequate gas pressure over the last 18 months. It has caused us millions of taka in losses," said Harun-Ar-Rashid, chairman of the company.
He said the company has paid its workers over the past six months despite they had to stay idle most of the time due to the worsening gas crunch.
"We'll start production as soon as the gas supply scenario improves," he said.