The Bangladesh Securities and Exchange Commission (BSEC) has asked Progressive Life Insurance Company Ltd. to reconstitute its board by appointing five independent directors nominated by the regulator.
The company has also been asked to hold its pending annual general meetings (AGMs).
The regulator has issued the order recently as the company failed to hold the AGMs for the years 2020-2022 and reconstitute its board in due time. As per the regulatory directive, a company is required to reconstitute the board within 45 working days of its placement in the 'Z' category.
The securities regulator has asked Progressive Life's all board members, including the nominated directors, to attend a meeting at the BSEC office today (Wednesday). BSEC Chairman Prof Shibli Rubayat Ul Islam will chair the meeting.
Asked, Mohammad Saifur Rahman, a BSEC executive director, said the regulator convened the meeting to discuss the company's situation and ways to make it viable.
The BSEC in June last formed an inquiry committee, which has already conducted an investigation into the company's financial irregularities.
The probe was conducted following a complaint lodged with the securities regulator by the some former sponsor-directors and shareholders of the company.
Mentioning the inquiry committee's findings, the BSEC said the company and its directors violated the securities rules, as the financial disclosures did not reflect the company's actual scenario. The company also did not comply with different provisions of accounting standards.
The BSEC said the inquiry committee identified serious irregularities in the company's acquisition of fixed and other assets. The irregularities were reflected in the financial statements, misleading the investors.
Meanwhile, Progressive Life terminated its company secretary Md. Johir Uddin on Tuesday following a dispute among the company's former and existing board members.
Contacted, Mr. Johir said it was not rational to terminate him a day before the scheduled meeting at the BSEC.
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