• Wednesday, Apr 14, 2021
  • Last Update : 03:47 am

BSEC to restructure boards of four companies

  • Published at 12:22 am February 23rd, 2021
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The companies are United Airways, C&A Textiles, Familytex and Emerald Oil Industries

The stock market regulator is set to restructure the boards of four non-performing companies as a last-ditch effort to salvage them.

The companies are United Airways, C&A Textiles, Familytex and Emerald Oil Industries. 

The restructured boards would be given four years to revive the companies’ fortunes. In case of failure, the company would face forced delisting.

The decision has been taken with the view to protecting the interests of retail investors, who hold a disproportionate stake in the companies, BSEC officials said. 

Earlier in August last year, the stock market regulator took several decisions on the issue. 

As per the BSEC's decision, the companies that are trading in the 'Z' category for two years or above will have to restructure their incumbent boards within 45 working days after the announcement of the order in written form.

Otherwise, the directors and sponsors of the companies will not be allowed to be the directors of other listed companies and market intermediaries.

And the sales, transfer, replacement and pledges of the shares held by all sponsors and incumbent directors at 'Z' category companies will remain closed.

In the last month, the BSEC delisted the now-defunct United Airways and sent it to the over-the-counter (OTC) market.

United Airways have been grounded since March 7, 2016, and is unlikely to take off again.

Its stock though has been trading as normal on the Dhaka and Chittagong bourses, where they were listed in 2010, but as a junk stock.

None of the four companies could be reached for comment at the time of filing the report.

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