Companies Act to be rewritten this year.

SUMMARY: The commerce ministry will be ameliorating the companies act this year in an effort to make it absolute and time-befitting.

Tapan Kanti Ghosh, senior secretary to the commerce ministry, expressed that the former companies act had a deficiency in it as it prevented all the stakeholders from arriving at solidarity.

He added that they are anticipating that the adapted act will allow the stakeholders to reach unanimity and thus, will take the initiative to send the amended draft to the parliament for final authorization.

He conversed about these at a workshop on investigative journalism on company reporting jointly that was orchestrated by the Economic Reporters’ Forum (ERF) as well as the MRDI at the ERF office in Dhaka. Journalists who cover the subjects on business, economic and trade issues also engaged in it.

Despite the fact that Ghosh did not specifically mention when the drafted act would be sent to the parliament, he did divulge that the companies act ought to be upgraded anyway as it has been a long time since the act was last amended and the economy of the country has augmented a lot since then.

An example of it can be the claiming of e-commerce business programs for reinforcement of the former choice of advance payments. Howbeit, the hands of the government are tied in this case in order to uphold the customers’ interests. 

Several companies desire to close down their businesses and pursue exit plans but do not succeed in doing so as the required series of steps are intricate. Hence, the company law must also amend these issues.

Measures to amend the act of 1913 were first taken in 1981 and the amendment was then brought to a conclusion in 1994. Thus, the last time the act was modified was in the year 1994 and, therefore, it is quite obvious that it needs further modification for the world has changed a good deal since then.

An advocate of the Supreme court and a former president of the Metropolitan Chamber of Commerce and Industry (MCCI), Nihad Kabir, articulated that, certain vital arenas of the companies act must be amended as well. She added that the matter of transfer share must also be dealt with.

Kabir stated that the government’s approval for the local companies to invest overseas was a brilliant decision considering the fact that the country has had a substantial economic escalation over the years. This approval will help build new markets and ensure technology transfer, according to her. 

She further opined that many companies would turn to illicit means had the government not allowed them to invest worldwide legally.

The director of the CFA Society Bangladesh, Shahidul Islam, conversed about numerous issues that are relevant to the companies’ financial statements.

Other prominent officials such as Hasibur Rahman, executive director of the MRDI; Sanaul Haq, director; Sharmeen Rinvy, president of the ERF; M Shafiqul Alam, vice-president; and SM Rashidul Islam, general secretary also discussed about this matter.

Picture and Article source: The Daily Star

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