Independent Director Selection
Farashuddin, Mustafiz on DSE list of 14 for 7 places
The Dhaka Stock Exchange on Tuesday submitted a list of 14 individuals including former Bangladesh Bank governor Farash Uddin Ahmed and Centre for Policy Dialogue executive director Mustafizur Rahman to the Bangladesh Securities and Exchange Commission for choosing seven independent directors of the bourse. The other proposed names for the independent director posts are: University Grant Commission member Abul Hashem, law ministry additional secretary Nasreen Begum, commerce ministry additional secretary Md Ruhul Amin Sarker, ex-foreign secretary Waliul Islam, BUET professor M Kaykobad, former BASIS president Habibullah N Karim, former justice Siddiqur Rahman Miah, FBCCI first vice-president Monowara Hakim Ali, FBCCI vice-president Md Helal Uddin, former DCCI president Asif Ibrahim, chartered accountant Md Ashraf Uddin Ahmed and Brigadier General Mohammad Mujibur Rahman.
Of them, law ministry additional secretary Nasreen Begum and University Grant Commission member Abul Hashem are already holding nominated director posts of the bourse.
The DSE board on Monday approved the proposed names.
As per the demutualisation scheme approved by the Bangladesh Securities and Exchange Commission, bourses are to submit two names against one independent director.
The next board of the bourse will include 12 members, seven independent directors, four elected shareholding members and chief executive officer-turned managing director of the bourse, if no strategic investor is found before the formation of a board.
‘We have received the 14 proposed names against seven independent director posts. Now we will verify their CIB report and shareholding position, if there is any, before making a final list,’ a BSEC commissioner told New Age.
‘If seven competent directors are not found, then we will ask the DSE to submit more names from the bourse as per the demutualisation scheme,’ he said.
As per the demutualisation scheme, an independent director will be elected as chairman of the bourse for three-year tenure, while the other independent directors will also hold their posts for the same period.
The tenure of the directors could be extended for another term of three years as per regulatory approval.
Any person who was affiliated with any stock exchange, any of the exchange’s subsidiaries or holding companies within the preceding three years of proposed appointment would be treated as unfit for being an independent director.
The demutualisation scheme of the bourse requires 10-year professional experience for independent directors with Masters degree either in business, economics, statistics, computer science, mathematics, public administration or law, while 15-year experience is a must for the independent directors with a bachelor degree in the same subjects or Masters in other subjects.
Professional designation like CFA, CA, CMA, CS and CPA will require 10-year professional experience.
The DSE on November 21, 2013 turned into a demutualised body as the bourses on the day received their amended memorandum and articles of association certified by the Registrar of Joint Stock Companies and Firms.
According to the Demutualisation Act 2013 passed by the parliament on April 29, the bourses have now become profit-oriented companies from non-profit organisations.
The member-brokers of the bourses have turned into shareholders of the companies and will get dividends from the bourses’ profit.
As per the demutualisation act, the bourse has to form its first board within 90 days of demutualisation.
The amended memorandum of association of the bourse has disallowed any shareholder of the bourse to enter into the bourse’s office without getting permission from the proper authorities.
The Bangladesh Securities and Exchange Commission set the demutualised board size at 13-member,
rejecting the DSE and CSE’s proposal of a 15-member board.
Earlier on September 26, the regulator gave its final approval to the demutualisation schemes of the DSE and the Chittagong Stock Exchange. The bourses had submitted their schemes to the BSEC on July 29, 2013.
-With New Age input
