The High Court yesterday annulled the posts of eight Pubali Bank directors including its chairman as they failed to hold 2% shares of the bank during their election on August 21 last year.
They are Hafiz Ahmed Majumder (chairman), Muhammad Faizur Rahman, Ahmed Shafi Choudhury, Fahim Ahmed Faruk Chowdhury, Muhammed Kabiruzzaman Yaqub, Rumana Sharif, Suraiya Rahman and Azizur Rahman.
The bench of Justice Md Rezaul Hasan delivered the ruling after rejecting the directors’ petition which had challenged the decision of bank’s election commission.
The election commission declared them disqualified as contestants for directorship as they didn’t hold 2% shares.
Mohammad Mehedi Hasan Chowdhury, the lawyer of the eight directors who were nominated from the general shareholders, told the Dhaka Tribune that the HC observed in the verdict that only the independent director and nominee director would be kept immune from the minimum share-holding requirement.
Bangladesh Securities and Exchange Commission (BSEC), by issuing two notifications on November 22 and December 7 of 2011, made it obligatory that every director must have 2% shares.
It said the shares should be acquired within six months of the directive.
Later on February 12, 2012, the BSEC clarified that the director nominated from the general shareholders, independent director and nominee director need not to have that minimum shares.
Annual General Meeting (AGM) of the Pubali Bank was scheduled to be held on August 21 of last year for election of the directors.
But the election commission of the bank on August 14 of the previous year held the eight ineligible persons for directorship as they lacked the required 2% shares. Later on August 20, they filed the petition under the Companies Act, 1994 questioning the decision of the election commission.
The High Court on the same day stayed the election commission’s decision and wanted to know why the decision should not be declared illegal. The eight were elected directors on August 21 last year.
After holding hearing on the rule, the HC yesterday gave the judgment.
Reshad Imam, lawyer of the Pubali Bank, told the Dhaka Tribune: “All the eight directors now have the 2% shares. They can be elected again through another AGM.”
“The High Court made the post of eight directors vacant as they had not attained the required share.”
He said an appeal would be lodged against the HC verdict since the vacancy might create complexities in the activities of the bank.