The High Court has declared illegal the Bangladesh Securities and Exchange Commission’s directive asking the director to hold at least 2% stakes in their own firms.
An HC bench comprising of justice ABM Altaf Hossain and Justice Kazi Rezaul Haque passed the order on Wednesday afternoon responding a writ petition filed by the National Credit and Commerce Bank Sponsor-Director Mostafizur Rahman.
Mostafizur Rahman filed the writ petition in 2012.
Earlier on November 22, 2011, the stock market regulator through notofication made it mandatory for sponsors and directors of listed companies to hold at least 2% shares in their own firms.
On May 21, 2012, the HC upheld the BSEC directive, rejecting petitions filed by some directors and aspirant directors of three listed companies.
On February 26, 2013, the HC asked the sponsors and directors of listed companies, who failed to hold at least 2% stakes in their own firms, not to attend board meetings.
On February 25, this year, it declared vacant the posts of eight Pubali Bank directors including its chairman, for not having 2% share of the bank.
