The Bangladesh Securities and Exchange Commission on Tuesday restructured the board of Ring Shine Textiles Limited by appointing seven independent directors to the board of the non-performing company.
The new board will have to appoint a new chief financial officer and a company secretary to the company.
The BSEC on Tuesday issued a letter to the company regarding the issue.
Independent director Mejbah Uddin has been made chairman of the new board of Ring Shine Textiles.
The other six independent directors are Mizanur Rahman, an Institute of Leather Engineering and Technology professor, Mohammad Sogir Hossain Khandaker, a Jaganath University finance department professor, Mohammad Moniruzzaman, a Dhaka University accounting and Information systems department associate professor, Foroz Ali, an Agrani Bank director, Istak Ahmmed Shimul, an independent director of Power Grid Company of Bangladesh, and Abdur Razzak, an independent director of Sonali Board and Paper Mills Limited.
The new board would ensure corporate governance and compliance with securities rules in the company.
The board will have to submit a business plan over going into regular operation to the BSEC, BSEC officials said.
Earlier on January 6, the BSEC appointed chartered accountant Hoda Vasi Chowdhury and Co as special auditor to Ring Shine Textiles to scrutinise the financial documents of the non-performing company.
Ring Shine made its debut on the stock exchanges on December 12, 2019. It declared factory lay-off on September 27, 2020 and is yet to resume operations.
The company’s key management members, who are Singaporean nationals, left Bangladesh in January 2020 amid alleged domination of one group over the company management.
The sudden departure of the company’s foreign directors has damaged its reputation, which has also weighed on its revenues.
The company raised funds worth Tk 150 crore from investors in 2019 to set up denim plants and repay bank loans, but the regulator froze its bank accounts in February 2020 due to various irregularities in the company, the BSEC officials said.
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