Tung Hai Knitting and Dyeing Limited is on the verge of collapse, and the Bangladesh Securities and Exchange Commission (BSEC) wants to help it avoid that.
To this end, the commission wants to restructure the company's board of directors after appointing independent directors there.
Meanwhile, the commission has requested that the central bank activate the frozen personal bank accounts of the company's directors and the chairman.
The company is in this predicament for various reasons, including its deteriorating financial situation and leadership crisis, foreign market competition and a shutdown of production.
In August last year, the securities regulator decided to freeze the bank accounts of the company's board of directors to safeguard the interests of investors.
BSEC sources said the company had remained closed for a few years due to a leadership crisis, and the commission wants to bring it back to business.
To this end, the commission would prioritise shareholders who want to be on the board and have a 2% stake in the company.
The company's management has already met the regulator to discuss recovery. The regulator will try to find a strategy to this end.
BSEC Commissioner Dr Shaikh Shamsuddin Ahmed said the commission plans to restructure the company's board to help it avoid slipping into a worse situation.
"We want it to be back in business for the interest of investors and want to appoint independent directors – as we did at Ring Shine Textiles – for recovery," he added.
He said the commission had activated the frozen personal bank accounts of the company's directors and the chairman.
The company's revenue and profit have been declining gradually since its listing on the stock exchanges in 2014.
Since the beginning of the second quarter of the 2016-17 financial year, the company has remained closed due to a leadership crisis and conflicts with workers following the death of the company's founder and managing director, Mahbubur Rahman.
Many of the company's top officials have already left. Foreign buyers have also turned their backs on it.
Due to a funding crisis, the company sold its raw materials and vehicles stored in the factory two years ago to pay workers' dues.