The Appellate Division of the Supreme Court has stayed a High Court (HC) order that earlier restricted the Mercantile Bank's sponsor-shareholders, having less than 2.0 per cent shares, to participate in the bank's affairs and perform as directors.
The five-member full bench of the Appellate Division led by Chief Justice Md Muzammel Hossain passed the stay order with observations recently, according to certified copy of the order.
Upon a writ petition, the HC in its interim order on February 25, 2013 also barred the sponsor-directors to spend any money out of their accounts of their respective companies including the Mercantile Bank.
 "Following the Appellate Division's stay order, now there is no bar for the Mercantile Bank's sponsor-directors, even if they don't have 2.0 pc shares, to participate in the bank's affairs, perform duties as directors and spend money from their accounts," Advocate Shah Mohammad Ahsanur Rahman, counsel of the bank, told the FE.
 "The Appellate Division's stay on the HC order will remain effective till disposal of the rule, earlier issued by the HC in this connection on the matter," Mr Rahman added.
In response to a leave petition filed by the bank against the HC order, the Appellate Division in its observations said that upon hearing counsels of both the parties "we are of the view that the ends of justice would be best served, if the rule itself is disposed of on merit by the High Court Division."
 "Let the rule be heard and disposed of by the Division Bench presided over by Justice Mirza Hussain Haider within eight weeks from the date of receipt of the order. The parties, if so advised, may take steps in this regard," the full bench of the apex court said.
Senior Advocate AJ Mohammad Ali and Mr Ahsanur Rahman appeared for the bank in the court while Advocate Rokanuddin Mahmud and Advocate Ahsanul Karim stood up for the Social Islami Bank Ltd, and Attorney General Mahbubey Alam argued for the Bangladesh Securities and Exchange Commission (BSEC).
Earlier in March 10, 2013, the SIBL sponsor-directors having less than 2.0pc shares also obtained the same order from the chamber judge's court against a HC order that on February 25, 2013 barred them to participate in their firm's affairs, perform their duties as directors and spend money.
The mandatory requirement of individually holding 2.0pc share was imposed by BSEC on November 22 in 2011 for the sponsor-directors, other than the independent ones at their companies' paid-up capital.
Appellate Division stays HC order
Mohammad Ali | Published: February 12, 2014 00:00:00 | Updated: November 30, 2024 06:01:00
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