The Dhaka Stock Exchange (DSE) has sought instructions from the securities regulator on changing the categories of companies that have failed to hold their annual general meetings (AGMs).
Recently, DSE's Managing Director (In-charge) Abdul Matin Patwary sent a letter to the Bangladesh Securities and Exchange Commission (BSEC) seeking the instructions.
Usually a company is transferred to Category Z if it fails to hold an AGM for two consecutive years.
At present, 12 companies are in Category A and B on the stock exchange, but they have not been able to hold AGMs for one or two consecutive years.
The companies are: Aman Cotton Fibrous, Alif Industries, Alif Manufacturing Company, Aman Feed, Ambee Pharmaceuticals, Confidence Cement, Delta Life Insurance, Libra Infusion, Ring Sign Textile, Shurwid Industries, Active Fine, and Appollo Ispat Complex limited.
Now the country's premier bourse needs a BSEC decision because the regulator, in September last year, issued a directive to overhaul the companies under Category Z, calling for a number of initiatives, including restructuring their boards.
Meanwhile, fiscal year 2019-2020 is over but many of the companies have yet to hold their annual general meetings.
The DSE has deemed that the companies have lost their eligibility to stay in their existing categories because they have not held their AGMs within the stipulated time as per the law.
As a result, the DSE says the companies need to be transferred to Category Z.