Experts at a webinar on Thursday came up with a number of observations and recommendations on companies act for improving the performance of Bangladesh in ease of doing business global ranking.
They said, although in 2020 amendments have been made in the companies act 1994, some provisions of the act are still required to fine tune with the best practices adopted in Singapore and Hong Kong, the countries ranking 2 and 3 positions respectively in the ease of doing business global ranking race in 2020.
They said, companies should prepare their Financial Statements as required under the provision of Financial Reporting Council (FRC) at par with international financial reporting standards (IFRS) and the audit should be carried out as per International Standards on Auditing (ISA) as approved by FRC because international & local investors need to comply with IFRS and ISA.
For ensuring the compliance the auditors should be paid as per prescribed minimum audit fees fixed by ICAB or higher accepted by the company, they said. They also stressed on the need to digitize all functions of RJSC.
The Institute of Chartered Accountants of Bangladesh (ICAB) organized the webinar on ease of doing business: perspective of companies act on Thursday where Tapan Kanti Ghosh, Secretary, Ministry of Commerce joined as the Chief Guest.
As Panel Speakers AHM Ahsan, In charge, Registrar, Office of the Registrar of Joint Stock Companies & Firms (RJSC), Jibon Krishna Saha Roy, Director, Bangladesh Investment Development Authority(BIDA), Barrister Nihad Kabir, President, MCCI, Dr. M. Masrur Reaz-Chairman of Policy Exchange of Bangladesh and Mohammad Enamul Huque, Managing Director & Head of Corporate, Commercial and Institutional Banking Standard Chartered Bank joined the programme. Md. Humayun Kabir FCA, Council Member and Past President, ICAB moderated the programme.
ICAB President Mahmudul Hasan Khusru FCA in his address of welcome said, ICAB felt necessity of the simplification & modernization of corporate laws to ensure a business-friendly atmosphere. The amendment to the Companies Act, 1994 is done; although we hope massive changes which were not happened.
Snehasish Barua FCA, Partner, Snehasish Mahmud & Co., Chartered Accountants and Tanjib-ul Alam, Barrister-at-Law (Lincoln’s Inn), Advocate, Appellate Division, Supreme Court of Bangladesh jointly presented the keynote paper.
ICAB CEO Shubhashish Bose made introductory remarks and ICAB Vice President Sidhartha Barua FCA delivered closing remarks in the Webinar.
Amendments bought in companies act in 2020 allows foreign company to open a private limited company in Bangladesh having 100% ownership. It gives them opportunity to open a company in a short time.
Similar practice is adopted in Hong Kong. Before 2020, in Bangladesh minimum two persons were required to open a company whereas under this new amendments, foreign company can also open a PLC or OPC.
