Top businesses against amendment to Bangladesh Companies Act

Top businesses on Tuesday voiced concern over the government move to amend the ‘Bangladesh Companies Act 1994’ allowing it to appoint administrators to any troubled companies.

Terming the proposed amendment ‘undemocratic’, they urged the government to refrain from bringing such an amendment in the greater interest of the country.

“The business community thinks the application of the provision that has been kept giving full indemnity for the administrators to be appointed to companies won’t be a right thing. This provision is no way acceptable,” they said in a joint statement.

They said there will be no accountability and transparency if the provision of giving indemnity to the administrators is there in place and it will rather create a scope for corruption.

The business leaders, however, said their support will be there for appointing administrators to the fraudulent Multi-Level Marketing (MLM) companies and other ones involved in financial irregularities.

President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) AK Azad, International Chamber of Commerce, Bangladesh (ICC,B) president Mahbubur Rahman, former FBCCI president Mir Nasir Hossain, BGMEA president M Shafiul Islam Mohiuddin, Metropolitan Chamber of Commerce and Industry (MCCI) president Maj Gen (retd) Amjad Khan Chowdhury, Dhaka Chamber of Commerce and Industry (DCCI) president Asif Ibrahim, Bangladesh Textile Mills Association (BTMA) president Jahangir Alamin and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) AKM Selim Osman were among the signatories to the statement.

The business leaders said the proposed amendment would disrupt the existing business climate in the country and discourage both local and foreign investment and urged the government to withdraw it.

The issue of appointing administrators came in discussion when the government moved to bring changes in the Companies Act 1994 to appoint the administrator to controversial Destiny Group to protect the interest of the depositors and stop the company officials to sell its assets.

On Monday, the cabinet asked the Commerce Ministry to further review the amendment proposal to safeguard the interests of people.

Meanwhile, the government is poised to shortly appoint an administrator to the controversial Destiny Group.

The appointment will be made in line with the recommendations of a government panel that investigated Destiny Group's alleged illegal banking and other activities.

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