The High Court (HC) Thursday declared the election of board of directors at the 37th annual general meeting (AGM) of Pubali Bank illegal and cancelled the board.
The court also directed the bank to arrange a fresh AGM to form its board of directors within six weeks upon receiving the copy of the verdict. The HC bench of Judge Sayed Refat Ahmed passed the order after the hearing.
Until the new board of directors are elected, the previous board will continue their tasks, HC in its order said.
The board of directors of the bank who got elected on July 30 AGM lost their validity followed by the order. The court has asked the central and Pubali Bank authorities to implement the order, Barrister Saqeb Mahbub, the lawyer of the case, told The Business Standard Thursday.
He said, "The Securities and Exchange Commission Rules do not have any provision to elect the board of directors through virtual meeting."
On July 28, a case was filed with the court prior to the bank AGM on July 30 challenging the board election. Pubali Bank Director Arif Chowdhury filed the case.
Barrister Saqeb Mahbub said the 37th AGM of Pubali Bank was held virtually presided over by board of directors Chairman Md Azizul Huq. The AGM approved 10 percent cash dividend to its shareholders for the last year concluded December 31, 2019. Besides, it elected the new board of directors.
Advocate Ramjan Ali Sikder and Barrister Mostafizur Rahman Khan represented the bank during the hearing, while AM Mahbub Uddin Khokon and Barrister Saqeb Mahbub moved for the petitioner.