Ring Shine’s new board of directors to visit factory Sunday
The board of directors will also identify the cause of the company’s failure and talk to the foreign buyers.
With a view to go into operation, the new board of directors of Ring Shine Textiles Ltd will visit its factory on Sunday in the Export Processing Zone (EPZ) in Gazipur.
Recently, a probe committee of the Bangladesh Securities and Exchange Commission (BSEC) also visited the factory.
Istak Ahmmed Shimul, an independent director in the new board of directors of Ring Shine, told The Business Standard, "After visiting the factory, the new board of directors will take initiatives to run the factory for the interest of investors."
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"We will try to run the factory by keeping in mind the investors' interest and eliminating obstacles. If needed, we will seek help from the stock market regulator," he added.
The board of directors will also identify the cause of the company's failure and talk to the foreign buyers.
Ring Shine Textiles Limited's factory remained shut since 27 October last year as foreign orders were canceled during the pandemic.
After several extensions of the closure, Ring Shine failed to resume production.
To protect the investors' interests, on 26 January this year, the securities regulator reconstructed the company's board of directors, which is composed of former police officials, Dhaka University teachers, former bankers, and market professionals.
The BSEC sat with the newly formed board on 3 February to discuss the resumption of production of the factory.
The new board held another meeting on their own on 7 February. It reconstructed the audit and nomination and remuneration committees.
Meanwhile, the inquiry committee of the BSEC is working to trace a fund of Tk275 crore which the company raised through private placements of their shares prior to the initial public offering (IPO).
The BSEC asked the shareholders who had privately acquired Ring Shine's stocks to submit supporting documents, such as a copy of allotment letters, pay orders and bank deposit slips of the transactions.
Additionally, the commission has also sought the names and contact details of the banks where the funds were deposited against the Ring Shine shares.
Ring Shine Textile Limited raised Tk150 crore capital in 2019 through IPO.
