At the latest meeting of the Bangladesh Securities and Exchange Commission (BSEC), it was decided that the directorships of 12 entrepreneurs and directors of six insurance companies would be canceled for those who do not hold at least 2% share in their own company. These managers have not held 2% shares as per the law for a long time.

Directors are Sharmin Nasir and Dilruba Shariman, Directors of Meghna Life Insurance, Habib E Alam Chowdhury and Badlur Rahman Khan, Directors of Prabhati Insurance, Mohammad Iqbal, Entrepreneurial Director of Eastern General Insurance, Director of Eastern Insurance Company Limited in Bangladesh Humayun and Mercantile Insurance directors Shafiq Ahmed, Azad Mostafa, Aziz Mohammad Ershad Ullah, Farhana Islam Sonia and Saad Qadir bin Solaiman.

The decision will be implemented at the latest meeting of the Bangladesh Securities and Exchange Commission (BSEC) from Sunday (September 20). In early July, the commission issued a directive that directors of companies without a 2 per cent stake in their companies could not remain in office.

BSEC has given 45 days to those who do not have 2% shares to buy them for the last time. In this opportunity, 44 directors have bought shares and fulfilled the condition of holding their minimum shares.

Some directors have applied over time for not being able to buy shares on time. The commission accepted their application. The directors of these companies did not follow the instructions of the commission even after the end of the extra time.

As per the guidelines in early November 2011, it is mandatory for a company to hold a minimum of 2% of its shares in order to hold the post of director of BSEC. Many directors had filed writ petitions in the high court challenging the directive. However, the High Court declared the direction of the commission valid.