The Bangladesh Securities and Exchange Commission (BSEC) has restructured the board of directors of Agni Systems Ltd in a move to protect the interest of investors and bring the company back to a sound business position.
The securities regulator has nominated two distinguished individuals –Professor Mohammad Ridhwanul Haq of Institute of Business Administration of the University of Dhaka and Assistant Professor Mansura Akter of international business department at the same university – as independent directors of the internet service provider.
The BSEC has also instructed the company, which got listed on the stock exchanges in 2003, to nominate at least two or more shareholder directors, each holding a minimum of 2% shares in the company.
Besides, it has directed the Investment Corporation of Bangladesh (ICB) to include a nominee in the board of directors of Agni Systems, since ICB is a shareholder of the company.
Agni Systems was supposed to reshape its board within 45 working days as per the 30% shareholding rules, but the company failed to comply with the provision.
Within 10 days of every month, the independent directors will submit a report of the previous month to the regulator, mentioning the company's compliance and progress status.
BSEC Commissioner Dr Shaikh Shamsuddin Ahmed said, "We have nominated two independent directors for the new board to develop the business of the company."
"Now, they will take the responsibility of the company as watchdogs," he added.
According to the financial statements for the fiscal year that ended on 30 June 2020, the net profit of Agni Systems was Tk2.22 crore and the revenue Tk35.53 crore.
During the period, the return on equity (ROE) was 2.18%, which was 5.16% in the previous year.
At the same time, the earnings per share of the company was Tk0.31, and the net asset value per share was Tk14.05.
As of July last year, sponsors and directors of the company jointly held 9.39% shares, institutional investors 41.77%, and general investors 48.48%.
Agni Systems, which was incorporated in November 1995, recommended a 2% cash dividend for its shareholders for the last fiscal year.
The last trading price of the company's shares was Tk17.40 each at the Dhaka Stock Exchange on Monday.
The main business of the company is to render service of electronic mails, internet access, electronic data communication, computer networking, software development, and to provide consultancy services for all types of computer software and communications.