'Modernizing the Companies Act is essential to attract FDI'
The Dhaka Chamber of Commerce and Industry (DCCI) has said the revision of the Companies Act should focus on the demand of the businesses and economic development.
The DCCI made the recommendation through a press release issued on Friday.
In the press release, DCCI President Abul Kasem Khan said a business-friendly environment was essential to help Bangladesh graduate to a middle-income country.
He added that the country needed to focus on policy reforms, reducing the cost for businesses, skill development, and addressing infrastructural challenges to achieve higher growth and attract investment.
DCCI Director Nuher Latif Khan said the modernization of the Companies Act “is now the demand of time,” and recommended streamlining the company registration process and suggested setting up two or more permanent High Court benches to resolve company cases.
Supreme Court lawyer Rashna Imam agreed, suggesting that a specialized tribunal can be set up.
Commerce Secretary Shubhasish Bose said the Companies Act needs to be amended further.
“In formulating the new Companies Act, we are trying to focus on easing share transferring process, taxation policy, reducing fees, etc,” he said, adding that by the next week, the compilation of the new Companies Act will be finalized.
After the amendment, new entrepreneurship development will receive a boost, he added.
Dr Masrur Reaz, a senior economist with the World Bank Group emphasized the simplification of the company law.
“Bangladesh ranked 178 among 180 countries in the ease of doing business index. We need to go for corporate governance and corporate management system. Modernizing the Companies Act is essential to attract FDI,” he said.
Standard Chartered Bank Bangladesh CEO Naser Ezaz Bijoy said the registration process of the companies needs to be fully automated. The new law, he said, “should focus on simplification of the merger and acquisition process.”
IDLC Limited CEO and Managing Director Arif Khan said Bangladesh’s corporate governance was weak.
He said: “We need to go for automation. For better functioning, coordination among RJSC, Bangladesh Bank, SEC, NBR, BIDA, City Corporations and other concerned regulators is a must.”
Former DCCI chief Asif Ibrahim said: “We need to customize the Companies Act to our own interests.”