The Bangladesh Securities and Exchange Commission on Wednesday restructured the board of Al-Haj Textiles Limited by appointing three independent directors to the board of the non-performing company.
The BSEC issued a letter to Al-Haj Textiles regarding the matter.
The regulator appointed Shafiqul Islam, a former additional secretary of the commerce ministry, KM Sala Uddin, a Dhaka University professor of management information systems and Melita Mehjabeen, an associate professor at the IBA of Dhaka University.
The company failed to comply with the conditions specified in the commission’s notification issued on September 1, 2020 to improve the business status of ‘Z’ category company.
‘Therefore, the regulator will initiate all necessary and relevant legal actions to protect the interest of the investors of the
company and the company as a legal entity,’ the letter said.
The regulator on Wednesday also formed a committee headed by its executive director Saifur Rahman to oversee the whole affairs of Al-Haj Textiles.
Al-Haj Textiles which was listed on the stock exchange in 1983 shut down production on June 25, 2019 and its shares are now being traded under the ‘Z’ category, which groups low-profile and non-performing companies.
The sponsors and directors of the company are holding jointly only 12.78 per cent of paid-up capital of the company, breaching the securities rules.
The general shareholders holding 87.12 per cent shares are not getting dividends for the last two years, which is detrimental to the interest of the investors of the company.
One of the directors of the company sold a significant amount of shares at high prices, more than Tk 100 a share, in the 2017-19 period without any declaration, in violation of insider trading rules, the letter said.
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