The securities' regulator is set to introduce a provision, among others, of appointing at least one woman director in the companies' boards as part of women empowerment.
The Bangladesh Securities and Exchange Commission (BSEC) is working to upgrade the mandatory corporate governance guidelines by incorporating some new provisions.
The other proposed provisions, which are also set to be included in guidelines, are the formation of a risk management committee and reducing the responsibility of a chief executive officer (CEO) who looks after more than one company as group CEO.
"Corporate governance guidelines require upgradation along with changing of time and companies' aspects. Considering these issues, the regulator has taken initiative to upgrade the guidelines," said a senior official of the securities' regulator.
The securities' regulator made the corporate governance guideline mandatory in 2012 setting different provisions including appointment of at least one fifth independent directors.
Recently, some market experts urged the regulator in some seminars for bringing necessary modifications in the guidelines taking into account the global best practices and the practices of neighbouring countries.
If the proposed provisions are included in corporate governance guidelines, the companies will have to appoint at least one woman director, other than sponsor-directors, in the board.
In the upgraded guidelines, the regulator will mention the relationship criteria of woman director to avoid any possible conflict of interest.
The BSEC will set limitation for a CEO in case of looking after more than one company owned by business groups.
It is often observed that only one CEO is carrying put responsibility for all companies owned by a business group. In that case, the CEO's proper responsibility is disrupted for a company because of increased volume of job, the BSEC observed.
"The revised corporate governance guidelines will specify the number of companies for a CEO who look after all companies of a business group," the BSEC official said.
Another provision of appointing a risk management committee is also set to be included in the corporate governance guidelines.
The proposed risk management committee will report on possible impact on the company's business due to changes in consumers' behaviour and consumption.
"The risk management committee will help the company in accelerating its operation."
As per another proposed provision, the company's board may require an opinion in case of making disclosure.
Another condition regarding an effort of reducing environment pollution will also be included in corporate governance guidelines.
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