The Insurance Development and Regulatory Authority (IDRA) had directed Sonali Life Insurance Co Ltd – a company listed in the capital market – to cooperate with the company CEO Mir Rashed Bin Aman.
But instead, the Sonali Life Board of Directors sacked Aman. IDRA is planning to seek an explanation from the company on this matter.
On January 10, IDRA had instructed the company board not to create any obstacles that could prevent Aman from performing his duties as the CEO of Sonali Life Insurance.
Sonali Life's board of directors held a board meeting on January 13 after receiving a letter of cooperation from IDRA. At that meeting, CEO Mir Rashed Bin Aman was suspended, pending final approval from IDRA.
Speaking to The Business Post on Tuesday, IDRA spokesperson Jahangir Alam said, “The board of directors of any company can take any decision regarding its chief executives. But it has to get final approval from IDRA.
“IDRA had sent a letter to the Sonali Life Insurance Company about cooperation with the CEO. But I heard that the company had suspended their CEO at a board meeting.”
Alam added, “Because Sonali Life did not follow IDRA instructions, they should provide an explanation first. If there is no reasonable consideration, there is an opportunity to take action against them.”
IDRA's letter to Sonali Life Insurance on January 10 had further stated that not allowing the CEO to perform his duties is illegal, and in violation of the corporate governance guidelines. Moreover, IDRA, the regulatory body for the insurance sector, pointed out that the ongoing investigation activities directed by the authorities are being obstructed.
In a letter sent to the capital market regulator Bangladesh Securities and Exchange Commission (BSEC) and the insurance regulator IDRA on January 9, Mir Rashed bin Aman complained that the board of directors is not allowing him to enter the company's office, his room had been locked, and his access to the company's software was blocked.
He has been unable to fulfill his duties as a result.
After this, IDRA ordered all the directors of the company, including the chairman of Sonali Life Insurance, to cooperate with Aman without creating any obstacle in the performance of his duties as the chief executive officer.
A director of Sonali Life Insurance told the Business Post, on condition of anonymity, that the company has grown large through the leadership of Mir Rashed Bin Aman as the company CEO. Attempts are being made to remove him on purpose.
Saying that everything will be done in the interest of the customers by resisting those who are trying to remove the incumbent CEO, he called on IDRA to properly enforce the law to protect the company’s life fund of about seven hundred and fifty crores from this cycle.
On October 28 last year, Mostafa Golam Quddus was elected as the chairman of Sonali Life.
In 2021, he became a shareholder and director of the company. In 2019, he became the owner and director of the company, with shares received as a gift from his daughter-in-law Safia Sobhan Chowdhury.
Allegedly, the current chairman of the company has about seven members of his family on the board of directors of Sonali Life Insurance. He is trying to dominate the company by exerting influence through them.
On December 31 last year, IDRA appointed an auditor to look into various financial irregularities at Sonali Life Insurance.
Audit firm Hoda Vasi Chowdhury & Co was appointed as the auditor. The authorities directed the investigation of 17 issues with the insurance company to be completed within 30 days.
The Business Post attempted to contact the Sonali Life Insurance CEO Mir Rashed Bin Aman on phone for his comments on the matter, but he could not be reached till the filing of this report.
However, he recently told the media that he was temporarily dismissed in the last board meeting. “I was not told the reason for this dismissal. But I am not involved in any such activities for which the company can terminate me as per law.”
The chairman of the insurance company, Mostafa Golam Quddus, had said in this regard, “Taking into consideration the overall situation, it was decided in the board meeting that the CEO would be temporarily dismissed.
“The decision document from the board meeting will be sent to IDRA. After receiving approval from IDRA, the decision to dismiss the CEO will be effective.”
