e-platform cleared for independent director’s appointment

The Bangladesh Securities and Exchange Commission has approved an online platform to facilitate the appointment process of independent directors for listed companies, to uphold the corporate governance code and transparency in the capital market.

BSEC made the decision at a meeting held at its headquarters on Thursday, presided over by its Chairman Prof Shibli Rubayat-Ul-Islam, says a statement, adding that the “Regulatory Submission Form for Independent Directors” platform will be operational from February 1.

“In compliance with the Corporate Governance Code, 2018, the respective company will apply to the commission for approval regarding the appointment or reappointment of the independent director on the board of directors of the company through the Online Regulatory Submission Form for Independent Directors,” a BSEC notification said.

The web link for this platform is www.sec.gov.bd.

In 2020, M Khairul Hossain’s commission at the BSEC decided to form a panel of independent directors for listed companies in accordance with qualifications and professional experience mentioned in the corporate governance guidelines.

The commission decided that listed firms cannot appoint any independent directors beyond the individuals recommended by the regulator.

According to the corporate governance code, a listed company’s total board members cannot be less than five or more than twenty, and at least one-fifth of the directors must be independent.

An independent director of a company is a director who either does not hold any shares or holds less than one per cent of the total paid-up shares of the company. Currently, there are 345 companies listed on the country’s prime bourse, the Dhaka Stock Exchange.