DCCI President Barrister Md. Sameer Sattar said that the reform of the existing Companies Act 1994 is now the pressing demand of time to create wider business confidence in the country as well as to attract FDI.
He was addressing a seminar on “Reform of Companies Act 1994” organized by the Dhaka Chamber of Commerce & Industry (DCCI) held on Saturday at DCCI auditorium.
Sattar said that in order to fostering a pro-business environment with corporate governance in Bangladesh, formulation of relevant policies including Companies Act isinstrumental. The century old Companies Act is limited to private and public limited companies and unable to cater cross-sectional and diverse businesses and competitiveness of private sector in the changing geo-economic business dynamics.
He later recommended forincorporating full-fledged automation and maximum flexibility to use technology within the framework, provision of Alternate Dispute Resolution (ADR) for speedy dispute resolution, provision of incorporating Intellectual Property Rights (IPR).
Senior Secretary of the Ministry of Commerce, Government of Bangladesh Tapan Kanti Ghosh graced the seminar as the chief guest. He informed that the revised Companies Act is now at his Ministry after necessary vetting and scrutiny from Ministry of Law. Soon it will be sent to the Cabinet Division to appraise it to the National Parliament, he said.
He said “we don’t want to make businesses complicated, rather less interference brings more efficiency at the end, and we believe in this philosophy”. Too much restriction by the law will not bring positive result, he also added.
He requested the businesses not to do profit only, rather, think about the community, society and well-being of mankind while doing business.
Barrister Rashna Imam, Advocate, Supreme Court of Bangladesh presented the keynote paper.
She highlighted few reform proposals like the need of robust legal framework for merger and acquisition to fill the legislative vacuum. Currently winding up procedures for a company is a lengthy and expensive process. She recommended to make it much easier.
She also pleaded for mandatory provision of alternative dispute resolution (ADR) or mediation to be inserted in the new Companies Act.
Md. Shahadat Hossain, FCA, Council Member & Former President, ICAB said that timely execution of Annual General Meeting is very important for compliance.
Winding up of a company should be easier and the process should be short.In maximum private companies independent director can be introduced for transparency, he opined.
Md. Abdur Rahman Khan, FCMA, President of ICMAB said that reform of the Companies Act will ease the business processes. Companies Law is a dynamic law in nature, with the changes of time, the law needs to be updated with the changing dynamics of world businesses.
