Listed firms must appoint female independent director by 30 June: BSEC

The Bangladesh Securities and Exchange Commission (BSEC) has made it mandatory for all listed companies to appoint at least one female independent director on their boards by 30 June.
The directive was reiterated at a meeting held last week by the commission’s Corporate Governance Division with company secretaries of firms that have yet to comply. The meeting was chaired by BSEC Executive Director Anwarul Islam, the regulator said on Sunday.
At the meeting, it was stated that under the Corporate Governance Code, eligible female candidates for independent director positions may include business entrepreneurs, members of business associations, corporate leaders, professionals, teachers of public and private universities, government officials (both serving and retired), holders of professional degrees, and lawyers practicing in the High Court Division.
Although the appointment of female independent directors had previously been made mandatory for listed companies, a significant number of firms have yet to comply with the requirement.
In this context, BSEC has issued an ultimatum, directing all non-compliant companies to appoint a female independent director by 30 June. The regulator also warned that legal action will be taken against companies that fail to comply within the given deadline.
According to BSEC, through an amendment to the Corporate Governance Code, 2018, a gazette notification was issued on 29 April 2024, making it compulsory for listed companies to appoint at least one female independent director. Initially, a one-year deadline was provided, which was later extended to 31 December 2025.
Following BSEC’s directive, Dhaka Stock Exchange (DSE) submitted updated information regarding the appointment of female independent directors. According to DSE data, 163 listed companies have already complied by appointing a female independent director. However, 131 companies have still failed to meet the requirement within the stipulated timeframe.