The Bangladesh Securities and Exchange Commission (BSEC) has directed listed companies that failed to appoint female independent directors in line with the Corporate Governance Code, 2018, to complete the appointments by June 30 this year.
The decision was disclosed on Sunday through a press release following a meeting held on April 29 with company secretaries of non-compliant listed firms at the commission’s headquarters in Agargaon.
BSEC Executive Director Md Anwarul Islam presided over the meeting organised by the Corporate Governance Department.
According to the regulator, legal action will be taken against companies that fail to comply after the June 30 deadline.
BSEC said eligible candidates for the post may include women entrepreneurs, members of business bodies, corporate leaders, teachers of public and private universities, serving or retired government officials, professional degree holders and practising High Court lawyers.
The commission made the appointment of at least one female independent director mandatory for listed companies through a gazette notification issued on April 29, 2024, after amending a provision of the Corporate Governance Code.
Initially, firms were given one year to comply, while the deadline was later extended until December 31, 2025.
According to updated information submitted by Dhaka Stock Exchange PLC, 163 listed companies have already appointed female independent directors, while 131 companies failed to meet the requirement within the stipulated timeframe.