Publicly traded companies can broaden transparency and governance thru paperless reporting and virtual meetings, experts say.
They said it would ensure participation of every local and foreign investor in meetings and annual general meetings (AGMs), which would protect investor’s rights.
Panellists at a webinar organised by the Bangladesh Association of Publicly Listed Companies (BAPLC) made the remarks on Friday evening.
Riad Mahmud, vice president of BAPLC presided over the virtual event, while Prof Shibli Rubayat Ul Islam, chairman of Bangladesh Securities and Exchange Commission (BSEC) attended the programme as the chief guest.
Dr ATM Tariquzzaman, a lecturer at Victoria University of Wellington in New Zealand and executive director, BSEC (on leave) presented the keynote at the webinar.
Managing Director of Dhaka Stock Exchange Limited Sanaul Hoq and Chairman of Association of Bankers' Bangladesh and Managing Director of Eastern Bank Ali Reza Iftekhar were also present as panel speakers.
Kazi Sanaul Hoq said that the participation of shareholders would reduce gradually due to coronavirus situation and the digital system can address the problem.
BAPLC Vice President Riad Mahmud said the digital system would make it easier doing business and reduce the cost of a business significantly.
The newly appointed chairman of BSEC Prof Shibli Rubayat Ul Islam said the new commission is giving top priority to capital market automation. The commission is trying to digitalise the stock market completely.
He also said that the regulator would see whether AGM can be continued to be allowed online with slight changes. Printing of a huge number of annual reports can be reduced by ensuring the distribution of the reports online.
The commission may also allow companies not to need sending documents every month to the BSEC. It is also working to develop the bond and sukuk markets and might engage insurance companies as the guarantor of the bonds, he says.
Ali Reza Iftekhar said if AGM of a company is held virtually, the participation of every shareholder from anywhere can be ensured.
He also said that due to the pandemic, most of the banks are holding meetings and AGM virtually amid regulatory relaxation. Company auditing can also be conducted digitally, he said.
Iftekhar said that the biggest challenge for the banking sector is governance that resulted in the copious amount of non-performing loans.
“We should ensure a way of raising governance in the financial system,” he said.
He urged the commission to address some of the contradictory rules of BSEC and Bangladesh Bank for banks.