Under the new Budget, shareholding percentage has been amended for amalgamation. Now shareholders holding at least 75% (previously 90%) of the value of shares in the amalgamating company (which now includes foreign companies, where there is foreign shareholding in a Bangladeshi company) become shareholders of the amalgamated company. Also, capital gain arising from any transfer of capital asset in a scheme of amalgamation is now tax exempted. Any consideration received by shareholders of amalgamating company in any manner other than shares of amalgamated company shall be subject to applicable tax. Also, the amalgamated company is now allowed to carry forward the accumulated loss and depreciation of the amalgamating company.

Offshore indirect transfer rules are also amended by bringing detailed valuation rules for capital gain to ensure that profits taxable in Bangladesh from indirect share transfer of a foreign shareholding company are not transferred to foreign countries.

As happening in many countries over the world, our Securities and Exchange Commission has not yet brought any new rule bringing ESG disclosure for listed companies, however, the corporations are required to keep in mind that the same may happen soon and they will require people and professionals to deal with such disclosure.

We will discuss and analyze the current legal issues involving Shareholding, Directorship, Corporate Compliances etc. The event will be conducted in hybrid fashion, where participants can join physically or virtually. The Seminar will take place on 13th September 2022 (Tuesday) at 3.30pm to 5.00pm at Rahman’s Chambers, Headquarters, Suite 5B, 4th Floor, Ataturk Tower, 22, Kemal Ataturk Avenue, Banani C/A, Dhaka-1213.

Join the event to enhance your knowledge and make yourself aware of the current legal issues.