Dhaka: Commerce Minister Khandakar Abdul Muktadir announced on Monday the need for significant amendments to the Companies Act 1994 to align with global standards and evolving business practices. Addressing a stakeholder consultation on the draft amendments, held at the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) boardroom, Muktadir emphasized the importance of learning from countries with effective business regulations to enhance trade practices in Bangladesh.
According to United News of Bangladesh, the minister highlighted that the Companies Act has seen only two minor reforms since its inception in 1994. Muktadir underscored the necessity of making the law more conducive to business in response to changing times. He suggested that instead of creating an entirely new model, Bangladesh could benefit by examining the laws of countries like Singapore and adapting a suitable framework.
Muktadir advised business representatives that any amendments should be preceded by a comprehensive review of similar international laws, with proposals being crafted based on the insights and experiences of the business community. Acknowledging the request from businesspeople for 30 days to review the draft amendments, he mentioned the possibility of extending this period to 60 days if required, while stressing that the quality of proposals should take precedence over speed.
The minister further noted that the government’s broader action plan includes the Companies Act amendment as part of preparations for Bangladesh’s transition from the group of least developed countries (LDCs). He pointed out the critical role of the private sector as the main driver of the economy and the importance of creating a favorable business environment for entrepreneurs.
Muktadir also reflected on the economic challenges faced by the government and private sector, citing the lack of substantial foreign currency reserves and budget allocations upon taking office. He emphasized the need for strategic planning and effective frameworks to navigate these challenges and advance economic development.
Additionally, FBCCI Director Barrister Nihad Kabi presented proposals at the event aimed at enhancing corporate governance. These included mandatory appointments of company secretaries for larger companies, restrictions on certain professionals representing companies, and improvements in the notice period for Annual General Meetings (AGMs). A suggestion to reduce the AGM notice period from 21 to 14 days was supported by Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association.
The consultation was presided over by FBCCI Administrator Md Fazlul Hoque and attended by representatives from various business organizations, regulatory bodies, stock exchanges, and audit firms.