7 independent directors of bourse interim board to continue for 3yrs

September 30, 2013

BSEC to issue demutualsiation directive today
Seven independent directors to be appointed in the interim boards of the demutualised bourses in November will hold their posts for the next three years, a BSEC official said.
He said four member-brokers in the interim boards would retire in February next year after holding elections for the four directorship posts before the bourses’ annual general meetings.
‘As per the demutualisation schemes of the stock exchanges approved by the Bangladesh Securities and Exchange Commission on September 26, the bourses have to adopt the interim boards in their respective extraordinary general meetings to be held within thirty days of getting directive from the regulator,’ the BSEC official said.
Member-brokers, who will turn into shareholders of the bourses after the demutualisation, will come into the first board of the bourses through elections, he said.
But, following the companies act, one third directors of the board will have to retire every year, the official said.
Persons having interest in the stock market for the last three years will not be eligible to be independent directors, he said.
‘The interim boards which will be formed after the bourses getting registered as companies with the Registrar of Joint Stock Companies and Firms by November will do only the routine work of the bourses,’ he said.
He said that BSEC would issue directive to the bourses to implement the demutualisation schemes today.
The Dhaka Stock Exchange, however, in a hearing on the demutualisation scheme at the BSEC on September 25 proposed that the present board of directors should continue till the AGM of the bourse to be held on February next year.
The bourse also proposed a 15-member board for the demutualised stock exchange including six posts for shareholders, eight posts for independent directors and rest one for the chief executive officer.
The Chittagong Stock Exchange on September 24 proposed a 16-member board — seven posts for the member-brokers [shareholders], one post for strategic partner, eight posts for independent directors and one post for the CEO.
Earlier on July 29, the DSE and the CSE in their respective schemes of demutualistion submitted to the BSEC proposed 19-member boards with nine member-brokers and 10 independent directors and they proposed one-year term for the independent directors.
The commission, however, finalised the schemes, rejecting the stock exchanges’ proposal of raising the number of member-brokers in the demutualised boards as it kept only five posts for the shareholders [member-brokers] in the boards of the bourses.
The commission also kept one post for the strategic partner, seven posts for the independent directors and one for the chief executive officer with voting power.
The post for the strategic investors would remain vacant if no representative from such investors is found.

-With New Age input

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