Companies Act needs reform

The Companies Act of Bangladesh should be reformed as it has become outdated, experts said at a workshop in Dhaka on Saturday.

They emphasised that whether a company is public, private, or a proprietorship, all businesses must comply with laws and regulations. Proper compliance, they noted, would help prevent malpractice and misuse.

Experts added that Bangladesh’s economy is expanding rapidly due to the efforts of entrepreneurs. In an era of globalisation, maintaining compliance is essential to compete in international markets.

The workshop was organised by the Dhaka Chamber of Commerce and Industry (DCCI) at its auditorium in the capital.

DCCI President Taskeen Ahmed noted that many entrepreneurs and professionals often face confusion due to a lack of clear understanding of company law, constitutional requirements, and compliance issues.

AKM Nurunnabi Kabir, additional secretary and registrar of Joint Stock Companies and Firms (RJSC), said about 275,000 business enterprises are currently registered with the RJSC. Almost all company registration processes are now available online, except for share transfers, which the RJSC plans to digitise after necessary security reviews.

He urged businesses to comply with all rules and regulations to avoid unexpected incidents and advised company owners to train their professionals on the Companies Act, Articles of Association, Securities Law, and other related regulations.

DCCI President Taskeen Ahmed highlighted the importance of institutional transparency, accountability, and good governance in managing limited companies as Bangladesh’s economy and industrial sector develop.

Ahmed said the workshop provided detailed guidance on board meetings, annual and extraordinary general meetings, proper meeting procedures, strategies for maintaining compliance under the Companies Act, and fostering good relations with regulatory bodies.

Two keynote papers were presented by Mohammed Sanaullah, CEO and lead consultant of Sanaullah and Associates, and Md Selim Reza, Partner at Artisan, Chartered Accountants.

DCCI Senior Vice-President Razeev H Chowdhury and Vice-President Md Salem Sulaiman were also present at the workshop.