Home ›› 07 Feb 2022 ›› Stock
The Bangladesh Securities and Exchange Commission (BSEC) on Thursday reconstituted the board of the Fareast Islami Life Insurance once again in an effort to safeguard the interests of investors and policy holders.
The securities regulator appointed six independent directors and four shareholder directors in the board of the life insurance company.
The new independent directors are Bangladesh Insurance Association (BIA) Chairman Sheikh Kabir Hossain, Dr Lafifa Jamal, Dr Md Rafiqul Islam, Mozammel Haque, Md Ibraheem Hosein Khan, and Sheikh Mamun Khaled. The new shareholder directors are – Sponsor Director Md Helal Miah, a representative of Fareast Securities Limited, a nominee director from Tradenext International Limited, and Jupiter Business Limited.
The BSEC sent letters to the individuals concerned in this regard on Sunday.
As per the BSEC latter, the inclusion of shareholder directors in the reconstituted board of directors of the company will be subject to consent of the existing board and post-facto approval of shareholders in the upcoming general meeting.
The companies, namely Tradenext International (holding 9.91 per cent shares), Jupiter Business (holding 9.90 per cent shares) and Fareast Securities (holding more than 2 per cent shares), may nominate one or more individuals against their shareholding in the company, the BSEC said in the latter.
In September last year, the BSEC had dissolved the board of Fareast Islami Life Insurance over a raft of financial irregularities, and restructured it by appointing 10 new independent directors.
Earlier, the BSEC had formed a committee to probe Fareast Islami Life’s financial irregularities, including non-payment of clients’ claims and money laundering allegations.
The regulator then decided to investigate the allegations brought against some officials, including an entrepreneurial director of the company.
Recently, the BSEC shared its investigation report with the finance ministry and Bangladesh Financial Intelligence Unit (BFIU) to look into the matter.
The stock market regulator revealed that the owners of Fareast Islami Life Insurance embezzled and laundered more than Tk 2,125 crore from the company in the past decade.
Former FILICL chairman Md Nazrul Islam, managing director Md Hemyet Ullah, and sponsor MA Khaleque were ‘particularly found to have actively planned and executed the related party transactions, forged documents, and ultimately laundered corporate resources for their private gains,’ the BSEC report said.
Meanwhile, the Insurance Development and Regulatory Authority has removed the company’s Chief Executive Officer Mohammad Hemayet Ullah from his position for committing financial irregularities, mismanagement, and being involved in activities against the interests of policyholders.
The IDRA mentioned that Hemayet Ullah would be fully responsible if further irregularities are unearthed in the future that took place during his tenure.
On Sunday, the company’s share price rose 4.56 percent to Tk 112.30.
