The Appellate Division yesterday stayed the High Court judgement that scrapped the SEC stipulation that sponsor directors of a listed company must own at least 2% of shares for holding their board seats.
After hearing on a writ petition filed by a sponsor-director of the NCC Bank, the HC on Wednesday also annulled the requirement for shareholders to own at least 5% of shares for being able to fill in for a “casual vacancy” in the board of directors.
Yesterday, following a separate petition filed by the Securities and Exchange Commission (SEC), the Appellate Division judge stayed that requirement as well.
The judge also sent the matter to the full bench of the division. It is likely to come up in the cause list on May 22.
Attorney General Mahbubey Alam pleaded for the SEC while Supreme Court lawyer Shah Md Ahsanur Rahman represented NCC Bank Sponsor-Director Mustafizur Rahman.
On November 12, 2011, the SEC issued a notification specifying the 2% and 5% rules. The HC declared the stipulations illegal because it said it to have found the provisions “arbitrary and discriminatory.”
