United News of Bangladesh

The Bangladesh Securities and Exchange Commission (BSEC) has issued a final ultimatum to 131 listed companies that have failed to appoint female independent directors to their boards within the stipulated time frame. The regulator warned that strict legal action will be taken against the non-compliant firms if they fail to meet the requirement by June 30. The announcement was made in a press release signed by BSEC Director and Spokesperson Md. Abul Kalam on Sunday. This follows a meeting held on April 29 at the commission's office in Agargaon, where secretaries of the defaulting companies were briefed on the mandatory directive. BSEC Executive Director Md. Anwarul Islam presided over the session. According to the Corporate Governance Code-2018, all listed companies must ensure female representation in independent director positions. The commission has encouraged the recruitment of qualified women from various sectors, including business leaders, corporate executives, academics, lawyers, and both active and retired government officials. The mandate was reinforced through a gazette notification published on April 29, 2024, which initially provided a one-year window for compliance. Although the deadline was previously extended to December 31, 2025, for certain criteria, the commission is now pushing for immediate implementation regarding these specific vacancies by the end of June. Data submitted to the commission by the Dhaka Stock Exchange (DSE) reveals that while 163 listed companies have completed the appointments, 131 companies remain non-compliant. The BSEC emphasized that this initiative is part of a broader effort to strengthen corporate governance and ensure gender diversity within boardrooms. The regulator made it clear that failure to implement the directive within the new deadline will result in punitive measures.

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.