The Dhaka Chamber of Commerce and Industry (DCCI) has urged for reform of the existing Companies Act followed by implementation as soon as possible to increase the confidence of the business community and attract foreign investment.
Barrister Sameer Sattar, DCCI president, said this at a seminar on possible reforms to the Companies Act-1994 at the DCCI auditorium on Saturday.
Tapan Kanti Ghosh, Senior Secretary, Ministry of Commerce, was present as the chief guest in the seminar.
“Company Act can play an important role in ensuring accountability in the corporate sector besides developing a business-friendly environment and attracting foreign investment in the country,” the DCCI president said.
Barrister Sameer said that this existing old Company Act is not enough to deal with the rapidly changing global situation and increase the capacity of the private sector.
To this end, it is necessary to implement automation activities through the full use of information technology, increase the use of alternative dispute resolution systems, and increase the use of intellectual property laws, he said.
Tapan Kanti Ghosh said that the Ministry of Law has given several guidelines on the draft company Act, which the Ministry of Commerce has worked on and initiatives will be taken to implement it soon.
He said that the Companies Act should not be over-enforced and punitive, as this would lead to disruption of business operations. Several initiatives have been taken to bring more automation to the Registrar of Joint Stock Companies (RJSC) operations.
“It is expected to be implemented by December this year. Once the automation program is completed, there will be no need to set up new branch offices of RJSC in different regions of the country to provide services,” he said.
Bangladesh Supreme Court Advocate Barrister Rashna Imam presented a keynote paper at the seminar.
She highlighted reform proposals like the need for a robust legal framework for mergers and acquisitions to fill the legislative vacuum.
Currently winding up procedures for a company is a lengthy and expensive process, and she recommended making it much easier.
Barrister Rashna also pleaded for mandatory provision of alternative dispute resolution (ADR) or mediation to be inserted in the new Companies Act.