BSEC permits A category cos to hold AGMs, EGMs digitally

The Bangladesh Securities and Exchange Commission (BSEC) has granted permission for companies trading under the A category for the past five years to hold their annual general meetings (AGM) and extraordinary general meetings (EGM) digitally.

In this regard, on 27 March, the commission issued a letter to both the Dhaka and Chattogram Stock Exchanges, instructing them to take necessary steps.

According to the regulator, A category companies may conduct AGMs and EGMs digitally, subject to ensuring compliance with the Companies Act, 1994, and other provisions outlined in the aforementioned directives.

After the commission's decision, three companies – Eastland Insurance, Green Delta Insurance, and Reliance Insurance – have already transitioned their AGMs to a digital format instead of hybrid.

Just three months ago, in December last year, the regulator took a strict stance on conducting AGMs and EGMs through the hybrid system—both digitally and physically.

At that time, the BSEC also decided to seek explanations from the stock exchanges regarding their failure in supervision, as some companies violated its directive issued in 2021 regarding the use of the hybrid system. 

Additionally, the commission directed companies to ensure that at least 25% of their board members are physically present.

Companies whose securities are traded in the A category are those that have paid over 10% dividends to their shareholders. Currently, 232 stocks are traded under the A category.