49pc BRTC shares to go public

Staff Correspondent | Published: 00:35, Feb 12,2020

 
 

The Bangladesh Road Transport Corporation Bill 2020 was passed in parliament on Tuesday with a provision to offload 49 per cent shares of the corporation in the capital market.

Road transport and bridges minister Obaidul Quader moved the bill in the Jatiya Sangsad, which was passed by voice vote. According to the new law, the government will own 51 per cent BRTC shares while 49 per cent will be offloaded for the public.

The bill was placed to update the relevant ordinance promulgated in 1961 with the provision to offload BRTC shares in the capital market.

As per the new law, the authorised capital of the road transport corporation will be Tk 1,000 crore which will be divided into 100 crore general shares with Tk 10 as the base price. The corporation’s authorised capital and paid-up capital under the past law were respectively Tk 6 crore and Tk 3 crore.

The amount of the paid-up capital has not been fixed in the new law as an annual general meeting or special general meeting of the corporation has been tasked with fixing the amount. The amount of the paid-up capital, however, shall not exceed the amount of the authorised capital, the fresh law stipulates.

There will be a 23-member board of directors of the corporation instead of the existing 11-member board.

The directors will come from the Local Government Division, Cabinet Division, Finance Division, Road Transport and Highways Division, Public Security Division, shipping ministry, Dhaka Transport Coordination Authority, Roads and Highways Department, representatives of the shareholders and administrative divisions.

If the public shares constitute 20 per cent to 34 per cent of the paid-up capital then there will be one director from the shareholders and the number will be two if the shares range from 34 per cent to 49 per cent. The board of directors will hold at least four meetings a year.

A new provision in the law is that the corporation will render transport services during emergency situations like hartal, blockade, transport strike, state of emergency, national disaster, Bishwa Ijtema, freedom fighters’ rally and in the case of emergency need of the state.

The corporation can form one or more companies taking prior permission from the government, according to the new law.

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