In order to protect the interests of investors and policyholders, the stock market regulator has restructured the board of directors of Fareast Islami Life Insurance Company Ltd.
On Wednesday, the Bangladesh Securities and Exchange Commission (BSEC) also nominated 10 independent directors for the company.
The regulator suggested electing Professor Dr Md Rahmat Ullah, dean of the Faculty of Law at the University of Dhaka, as chairman of the new board.
Other independent directors are Mohammad Sanaullah, Dr Md Rafiqul Islam, Md Mofazzal Hossain, Colonel (retd) Gazi Md Khalid Hossain, Snehasish Barua, Mozammel Haque, Suzadur Rahman, Md Zikrul Haque and Jaharul Islam Chowdhury.
The new board will set up an audit committee comprising independent directors as per corporate governance code 2018, take initiatives to reform the top management and to try to bring back its embezzled money within six months.
Besides, the new board will take steps against those who committed financial crimes and embezzled money from the company in the last 10 years.
Earlier, the stock market regulator appointed A Wahab & Co Chartered Accountants as a special auditor to audit the company's financial statements for 2016, 2017 and 2018.
There are allegations that the company does not meet the claims of its customers duly.
As a result, customers suffer even after their policies mature.
According to the financial report, in 2016, the company's fixed deposit was Tk1,431.10 crore, but it fell to Tk413.59 crore in 2018.
In 2018, the company's total investment was Tk2,512.86 crore, a decrease from Tk2,750.70 crore in 2017.
During the January-September period of 2020, the life account revenue of the company increased by Tk31.60 crore.
The company, which incorporated in Bangladesh on 29 May 2000, was listed on the country's stock exchanges in 2005.
The closing share price of the company on Dhaka Stock Exchange was Tk67.40.
The company paid a 20% cash dividend to its shareholders for the financial year that ended on 31 December 2018.
Sponsors and directors jointly hold 30.55%, institutional investors 41.22%, foreign investors 0.81%, and general investors 27.42% shares of the company.
Fareast Islami Securities Ltd and Fareast Islami Properties Ltd are the subsidiary companies of Fareast Islami Life Insurance.