Salman F Rahman, vice chairman of Beximco Pharmaceuticals and former private industry and investment adviser to former prime minister Sheikh Hasina, has been excluded from the company's board of directors.
The capital market regulator, Bangladesh Securities and Exchange Commission (BSEC), approved the newly reconstituted board of directors excluding him.
The reconstituted board was approved following an application from Beximco Pharmaceuticals at a BSEC commission meeting on Tuesday (September 29).
According to BSEC sources, the restructured board consists of nine members. Among them, three are sponsor directors: Ahmed Sohel Fasihur Rahman (ASF Rahman), Osman Kaiser Chowdhury, and Iqbal Ahmed.
Additionally, four independent directors have been appointed. A representative from IFIC Bank as a shareholder, along with the company's managing director (MD) ex-officio, have also been included on the board.
This marks the first time in the company's history that the managing director has been made a member of the board of directors.
With independent directors forming the majority on the reconstituted board, their role in management has expanded compared to before.
Earlier, in a letter to the BSEC, Beximco Pharmaceuticals stated that Salman F Rahman had agreed to step down from the board of directors.
The initiative to restructure the board by excluding him was taken based on his consent.
Following the company's application, the BSEC also granted consent for the board's restructuring.
After completing subsequent formal procedures, the regulatory authority approved the new board on Tuesday.
According to relevant sources, Salman F Rahman agreed to step aside considering the pressure on the business operations and reputation of various entities within the Beximco Group following the changed political situation in the country.
Sources mentioned that preventing damage to the company’s business and shareholders due to his involvement was also a key factor in this decision.
Salman F Rahman was arrested in August 2024 after the change in the political landscape. He is currently in prison.
Consent from foreign investors
Beximco Pharmaceuticals is not only listed on the country's stock market, but its shares are also traded on the Alternative Investment Market (AIM) of the London Stock Exchange.
Relevant sources indicated that foreign investors in the company also agreed with the plan to remove Salman F Rahman from the board in the interest of business operations.
Capital market analysts believe that Beximco Pharmaceuticals is an established company in the country's pharmaceutical sector.
However, due to Salman F Rahman’s association with its ownership and management structure, various pressures had recently mounted regarding the company’s business and reputation.
Forming a new board without him brings structural changes to the company's governance.
Observers believe that the majority of independent directors and the inclusion of the Managing Director on the board will create a new management framework for the company.
Strong profit position
Despite various political and business pressures, Beximco Pharmaceuticals has maintained its profitability.
According to the company's latest financial report, it earned a profit of Tk222 crore in the January–March quarter of this year.
Prior to this, the company reported a profit of Tk694 crore in FY25.
Capital market observers will now be watching closely to see what changes occur in the company's management and business operations following the formation of the new board, and how it impacts the confidence of local and foreign investors.