Thursday, July 7 2022

Principal Secretary for Commerce Tapan Kanti Ghosh was speaking at a journalist workshop on investigative journalism on corporate reporting jointly organized by the Business Journalists Forum (ERF) and MRDI at the office of the ‘ERF in Dhaka. Photo: Collected

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Principal Secretary for Commerce Tapan Kanti Ghosh was speaking at a journalist workshop on investigative journalism on corporate reporting jointly organized by the Business Journalists Forum (ERF) and MRDI at the office of the ‘ERF in Dhaka. Photo: Collected

The Ministry of Commerce will amend the Companies Act by this year to make the law more timely, Chief Commerce Secretary Tapan Kanti Ghosh said today.

The previous amendment to Bangladesh’s Companies Act was partial because not all stakeholders could reach consensus, Ghosh said.

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However, this year it is expected that all stakeholders will be able to reach consensus and steps will be taken to send the draft amendment to parliament this year for final approval, he said. .

Although Ghosh did not say when the draft amendment would be sent to parliament, he said the country’s economy had grown a lot over the years and many provisions of the Companies Act were also due. be modified.

For example, the emergence of e-commerce businesses in Bangladesh. E-commerce trading platforms have demanded the restoration of the previous option of prepayment of goods, but the government cannot do so to protect the interests of customers, Ghosh said.

“Many companies want to liquidate and apply for exit plans from the ministry, but the procedures are very complex, so these issues need to be amended in company law,” the principal secretary also said.

Previously, the last amendment to the law was made in 1994.

Ghosh was speaking at a journalist workshop on investigative journalism on corporate reporting jointly organized by the Business Journalists Forum (ERF) and MRDI at the ERF office in Dhaka.

Nihad Kabir, a Supreme Court lawyer and former president of the Metropolitan Chamber of Commerce and Industry (MCCI), said some key areas of the company law needed to be changed soon.

For example, the business exit plan of companies, because hundreds of sick companies are facing difficulties and they want to liquidate and exit the business.

However, exit procedures are time-consuming and complex, she said, adding that as a result many do not follow the rules of the exit plan.

Similarly, amendment of mergers and acquisitions in corporate deeds is also necessary, Kabir said.

The society’s first amendment initiative was taken in 1981 to amend the 1913 law and finally, it was finalized in 1994, she said.

The question of the transfer of shares in a company should also be modified. Regarding the government’s permission to allow investment by local companies abroad, Mr. Kabir said that as the economy has grown a lot over the years, the decision to allow investment abroad is therefore a good choice.

She said allowing overseas investment will ensure technology transfer and create new markets, Kabir said.

If the government does not allow overseas investment legally, many will invest overseas illegally, she said.

Shahidul Islam, Director of CFA Society Bangladesh, spoke about the company’s financials at the event.

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