The government has framed a draft policy suggesting formation of a commission to look after and facilitate social business in the country, sources said.
The draft has also suggested for not allowing taking of dividends by the entrepreneurs if anyone wants to leave a social business entity, sources said.
"We have suggested forming a commission to promote social business in the country," Towhidur Rahman Khan, director of Board of Investment (BoI) and head of the sub-committee on social business policy told the FE.
He said had there been a commission or a body to look after the social business affairs, it could have provided suggestions on settling the disputes that arose in the recent times.
"The draft is framed aiming to facilitate social business, not to regulate. No business can be regulated," Mr Khan said.
He said any social business entity has to be registered under the Companies Act, 1994. Of them, the entities which fall in the 'industrial' category must have registration from the BoI. On the other hand, the entities, which are engaged in trading, do not need BoI registration.  Â
"Business entities registered with the BoI enjoy various facilities offered by the government. They are offered the duty waiver and tax holiday facilities and many more. Those which lack BoI registration are losers," Mr Khan added.
He said as the social business entities would be registered under the Companies Act, 1994, the issues of dividend and investment would be governed by the same Act.
The government has formed a committee to frame policy for social business in the country after the Grameen and the Islamic Development Bank (IDB) moved to launch three social business ventures in the health and sanitation sector. Executive Member of BoI Nabhash Chandra Mandal has been made convener of the committee.
Mr Khan said the draft of the policy has been finalised and will be submitted to the committee soon. The committee will then send it to the ministry of finance. It will later get the cabinet approval to become a full-fledged policy. Â
The IDB-Grameen social business initiatives formed a joint venture between IDB and Grameen Trust to improve the quality of life of the poorest segments of society by supporting social businesses and making essential services and products available at affordable prices.
For the joint venture, the IDB has planned to provide US$ 10 million, while Grameen Trust will contribute a token amount of $10,000 in equity participation, to cover the investment opportunities, operational and administrative costs.
The joint initiative focuses on health care service for the poor and clean drinking water, and product-making materials for them.
Govt set to form commission to look after social business
Syful Islam | Published: December 27, 2013 00:00:00 | Updated: November 30, 2024 06:01:00
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