Some provisions of the Company Act, 1994, need to be modified to improve ease of doing business in the country, experts said at a webinar of the Institute of Chartered Accountants of Bangladesh (Icab), on Thursday.
Even though the 2020 amendment helps businesses, more change is necessary, they said, according to a press release.
The experts also made some recommendations on Thursday's webinar, where Tapan Kanti Ghosh, secretary, Ministry of Commerce, was the chief guest.
They said companies should prepare their financial statements as required by the provisions of the Financial Reporting Council (FRC), at par with the International Financial Reporting Standards (IFRS), and audits should be done per International Standards on Auditing (ISA) as approved by the FRC, because international and local investors need to comply with IFRS and ISA.
To ensure compliance, auditors should be paid according to the prescribed minimum audit fees set by Icab, the experts added.
They also stressed the need to digitise all functions of the Registrar of Joint Stock Companies and Firms (RJSC).
The merger and acquisition of companies should be done in two ways, merger by adoption and merger by formation, in line with the practice adopted in India and the UK, the speakers said.
All private limited companies with a turnover of more than Tk100 crore need to issue reports by their directors which also need to be reviewed by auditors under ISA. A directors' report and an audited FS with comments, must be submitted to the RJSC, the speakers added, noting that this could improve corporate governance in the country.
Icab President Mahmudul Hasan Khusru, FCA, who was present at the webinar, said, "Icab believes it is necessary to simplify and modernise corporate laws to ensure a business-friendly atmosphere,"
The government should remove any impediments to improve the business environment, and a balanced Company Act would encourage both local and foreign investors to make more investments in the country, he added.
Snehasish Barua, FCA, partner, Snehasish Mahmud and Co, and Tanjib-ul Alam, barrister-at-law (Lincoln's Inn), advocate, Appellate Division, Supreme Court, jointly presented the keynote paper of the webinar, moderated by Md Humayun Kabir, FCA, council member and past president, Icab.
Vice President of Icab, Sidhartha Barua, FCA, delivered closing remarks at the webinar attended by several others.