China filed a Complaint at the World Trade Organization over the U.S.’s Inflation Reduction Act, saying it was discriminatory and distorted fair competition. 

01/06/2024 | | Corporate, Dispute Resolution, International

Summary:  China complained against the U.S. Inflation Reduction Act to the World Trade Organization, claiming it was unfair and obstructed fair competition. President Biden signed the Inflation Reduction Act into law in August 2022. As a result, starting in 2024, American consumers who purchase automobiles with battery components from a "foreign entity of concern" will not be eligible for the... Read More

Exim-Padma Bank merger to take at least 18 months

01/06/2024 | | Banking, Finance, Corporate

Summary:  The planned merger of Padma Bank and Exim Bank is expected to take 18 months to 2.5 years, according to central bank authorities. The banks must submit a formal application to the Bangladesh Bank, supporting documentation, and a copy of the merger plan. The merger will be approved if the central bank approves the plan. Exim Bank, listed on... Read More

 BSEC grants extension to 13 companies for ensuring regulatory compliance of 30% shareholder requirement

05/03/2024 | | Capital Market, Finance, Corporate

Summary: The Bangladesh Securities and Exchange Commission (BSEC) directed listed firms to ensure 30% shareholding by sponsors and directors. Non-compliant firms, including Active Fine Chemicals and Central Pharmaceuticals, face scrutiny. The commission appointed independent directors to six firms and granted a year for 13 others to comply. Experts suggest removing non-compliant directors to protect investors. BSEC spokesperson noted ongoing efforts... Read More

BB states that weak banks are likely to experience mergers and acquisitions.

05/03/2024 | | Banking, Finance, Corporate

Summary: It has been 52 years since a bank in Bangladesh has closed and the assurance is that none will close soon. However, weaker banks that are facing problems may consider mergers and acquisitions (M&A) to strengthen their capital base, as per the Bangladesh Bank. The Governor of Bangladesh Bank, Mr. Abdur Rouf Talukder, stated on Wednesday that this option... Read More

Extension granted until 2029 to enjoy duty-free as WTO member amidst challenges

05/03/2024 | | Commercial, Corporate, International

Summary: At the 13th WTO Ministerial Conference in Abu Dhabi, Bangladesh successfully negotiated a three-year extension of duty-free market access following its graduation to a developing nation in 2026. Supported by 166 WTO members, this extension ensures continued access to LDC-specific technical assistance and capacity-building programs. The negotiations, spanning over five days, addressed concerns over potential trade losses post-graduation, exacerbated... Read More

Tightening of the Appointment & Dismissal rules of bank’s MDs 

05/03/2024 | | Banking, Finance, Corporate

Summary  The new regulations mandate banking managing directors or CEOs to have 20 years of experience, aged 45-65, with a three-year tenure, requiring Bangladesh Bank approval for appointments. To ensure governance and depositor protection, candidates are interviewed by central banks and then assessed by a committee. MDs who quit must justify, and new hires are expected to meet performance goals... Read More

Bar on family members of independent directors from owning bank share

05/03/2024 | | Banking, Finance, Corporate

Summary:  The Bangladesh Bank has mandated that independent directors in banks must be aged between 45 and 75 and cannot have family members holding shares in the bank. Any complaints proven against them will result in actions taken by the Bangladesh Bank under the Bank Company Act. Additionally, independent directors must possess at least 10 years of management or professional... Read More

Large companies are being advised by NBR to resolve their tax disputes using ADR

05/03/2024 | | Corporate, Dispute Resolution, Taxes & Finance

Summary The specialized unit for large taxpayers of the National Board of Revenue has recently advocated for alternative dispute resolution (ADR) as a means of resolving tax-related disputes for large corporations in the country. The unit has emphasized that opting for ADR can lead to a mutually beneficial outcome for all parties involved. By resorting to this mechanism, large corporations... Read More

Physical presence of chairman & MD mandatory at AGMs, decision taken by BSEC

05/03/2024 | | Capital Market, Corporate, Investment

Summary The regulatory body of the stock market has made it compulsory for a listed company to have at least 25% of its board members, including the chairman and managing director, physically present at the general meeting. This is to ensure that the company is accountable to its shareholders. Content On December 28th of the previous year, the Bangladesh Securities and Exchange... Read More

A new initiative has been introduced by the U.S. Attorney in Manhattan, which aims to promote more self-disclosure.

05/03/2024 | | Corporate, Dispute Resolution, International

Summary The U.S. attorney for the Southern District of New York has announced an initiative. The pilot program launched by the U.S. Attorney’s Office in Manhattan aims to provide individuals with an incentive to report and cooperate with authorities to prosecute criminal conduct. Content  The U.S. Attorney’s Office for the Southern District of New York has announced a new program aimed at... Read More

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