Regulator to restructure boards of 4 firms

The stock market regulator will restructure the boards of directors of four poorly performing companies in a move to bring them back to business.

The companies are United Airways (BD), C & A Textiles, Familytex (BD) Limited, and Emerald Oil Industries Limited.

To protect the interest of investors, the Bangladesh Securities and Exchange Commission (BSEC) has recently taken the decision.

The regulator said the restructured boards will get four years to revive the business of the companies. In case of failure, they will be delisted from the stock market.

United Airways (BD) was listed on the stock market in 2010. Recently, the commission transferred the company to the OTC (over the counter market) due to non-operation for a long time and it did not pay any dividend since 2015.

C & A Textiles, which got listed in 2015, remained closed from 2017. Investors incurred a massive loss by investing in the company.

The production of Emerald Oil Industries Limited, a rice-brand edible oil producer, which was listed in 2014, was closed from 2018.

On the other hand, Familytex (BD) Limited, which was listed in 2013, had been incurring losses the last four years.

As per the BSEC's decision, the companies which have been being traded in the 'Z' category for two years or so must restructure their incumbent boards within the 45 working days.

Otherwise, the directors and sponsors of those companies will not be allowed to be directors of other listed companies and market intermediaries.

And the sales, transfer, replacement and pledges of the shares held by all sponsors and incumbent directors of 'Z' category companies will remain stopped.