BSEC nominates six Independent Directors for board of United Airways (BD) Ltd

-A Monitor Report Date: 01 March, 2021 | 1431 Views

Dhaka: The Bangladesh Securities Exchange Commission (BSEC) has nominated six distinguished persons as independent directors of United Airways (BD) Limited.

At the same time BSEC has decided that: “the existing directors shall not be allowed to represent or be elected as a director in the company and the shares held by the existing directors and sponsors shall not be unblocked, until further instruction of the Commission”.
The nominated six persons are: Kazi Wahidul Alam, Dr. M. Saidul Islam, Md. Maksudur Rahman Sarker, ATM Nazrul Islam Ph.D. psc, Professor Dr. Md. Badruzzaman Bhuiyan, Mohammad Yunus and Mohammad Shah Newaz.                       aviation news bd
The BSEC proposed Kazi Wahidul Alam as the Chairman of the board of directors of the company.
The BSEC further notified that the company shall not be allowed to sell, mortgage, pledge, transfer, transmission, or dispose of any assets (including FDR) without prior approval of the Commission.
The name of independent directors as nominated by the Commission under the said notification and order, shall be not included in the particulars of directors and will not have any personal financial liability, the BSEC notification said.
The reason
The reasons for appoint of independent directors, the BSEC said that with effect from 05 September 2016, the company was placed/transferred in the “Z-category” and shares of the company have been trading under the Z-Category with the Stock Exchange for a period of 4 years more, but the company failed to improve performance during the period.
The company failed to declare cash dividend for a period of 10 years from 2010 and  failed to hold its Annual General Meeting (AGM) within the stipulated time.
The company was not in operation for a period of more than  4 years and  jointly holding of shares by sponsors and directors of the company,  is less than 05 per cent of paid-up capital of the company.                  aviation news bd

Moreover, the BSEC notification said “ it appear that the company is not appropriately growing and the shareholders, other than directors of the company (holding 95 per cent of the paid up capital of the company) are not getting dividends for a long period, which is detrimental to the interest of he investors of the company and undesirable to the Commission.”

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