The stock market regulator has reformed the boards of directors of three poorly-performing companies in a move to bring them back to business.
The three are United Airways (BD), C&A Textiles and Familytex (BD) Limited.
The Bangladesh Securities and Exchange Commission (BSEC) recently decided to restructure the three Z-category companies' boards in order to protect the interest of investors.
The capital market regulator said the new boards will get four years to revive their businesses. In case of failure, they will be delisted from the stock market.
However, the companies will not be allowed the sale, mortgage, transfer, replacement, share pledge or disposal of any assets – including FDR – without prior approval of the commission.
As per the BSEC decision, the companies which have been doing trade under the "Z" category for two years or so must restructure their incumbent boards within 45 working days.
Otherwise, the directors and sponsors of those business entities will not be allowed to hold the posts of director of other listed companies and market intermediaries, it added.
Listed in 2013, the company has been incurring losses over the past four years. It did not declare any cash dividend since its listing.
The company's performance has continuously been on the wane since 2016 mainly when Familytex Managing Director Mohammed Morshed and Chairman Roksana stopped investing in the company. Its net profit has reduced significantly over the years.
The company shares, held jointly by sponsors and directors of the company, are less than 4.02% of its paid-up capital.
The commission has nominated five individuals as independent directors of the company.
The five are: Kazi Aminul Islam (proposed chairman), Samir Kumar Sheel, Kazi Mohammad Hassan Jamil, Md Jamil Sharif, Brigadier General Sharif Ashan, and Foroz Ali.
The aviation company was listed on the stock market in 2010. Recently, the BSEC transferred the company to the over-the-counter (OTC) market due to its non-operation since 2017. The company has not paid a cash dividend since being listed.
United Airways shares jointly held by the sponsors and directors of the company are less than 5% of its paid-up capital.
The commission has nominated seven individuals as independent directors for the company. They are: Kazi Wahid-ul Alam (proposed chairman), M Sadiqul Islam, Md Maksudur Rahman Sarker, ATM Nazrul Islam, Professor Md Baduruzzaman Bhuiyan, Mohammad Younus, and Mohammad shah Newaz.
The company was listed on the stock market in 2015 and has remained closed since 2017. Investors incurred massive losses by investing in the company.
The company and its board of directors have not declared a cash dividend since its listing.
The jointly held shares by the sponsors and directors of the company are less than 22.14% of its paid-up capital.
The commission has nominated seven individuals as independent directors for the company.
The seven are: Narayan Chandra Debnath (proposed chairman), Mohammad Shariat Ullah, ABM Shahidul Islam, Rezwanul Huque Khan, ABM Asrafuzzaman, Toufiq, and Brigadier General Sharif Ashan.