2024-02-15 11:43:44
The regulatory body Bangladesh Securities and Exchange Commission (BSEC) has decided to panel the organizations providing services in organizing Annual General Meeting (AGM) and Special General Meeting (EGM) of listed companies on hybrid and digital platforms. In that case, the activities of the organizations providing services in conducting AGM and EGM on digital platform are coming under transparency and accountability.
The capital market regulator has taken this decision to make the meetings organized on the digital platform of the listed companies more investor friendly.
Henceforth, BSEC listed service providers will be responsible for conducting AGM and EGM of listed companies. It has been decided to ensure the regulatory framework for ensuring attendance, voting and other rights of shareholders in meetings held using digital platforms or online platforms in particular.
According to BSEC sources, a directive has been issued in this regard recently. The directive has been sent to The Institute of Chartered Accountants of Bangladesh (ICAB), The Institute of Cost and Management Accountants of Bangladesh (ICMAB) and the Institute of Chartered Secretaries of Bangladesh (ICSB).
As per the instructions issued by BSEC, the Internet Service Provider (ISP) or any company listed from the ISP panel of BSEC can entrust the responsibility of conducting general meeting (AGM/EGM) and online e-voting platform or system. In that case the listed companies have to follow the instructions and orders of the commission issued from time to time.
The guidelines further state that the individual scrutinizers appointed by the issuing companies shall observe due process of selection of AGM or EGM meeting. Details of voting results of meetings of listed companies should be confirmed. Later, the Internet companies will submit the authenticated report to the commission within 48 hours of the conclusion of the meeting.
BSEC has taken initiatives to enlist ISPs and independent scrutinizers to protect the interests and rights of investors, the directive said. BSEC has directed the organizations to take necessary action in this situation and distribute the two instructions mentioned above to all members of CA, CMA, ES firms and institutes.
Experts say this will increase transparency in AGMs and ensure voting rights of investors.
It should be noted that in 2021, in accordance with the government’s directives in the Corona situation, BSEC decided to hold various types of meetings-seminars on a digital platform instead of the hybrid method of various types of meetings-seminars of the listed companies in the management of capital market activities. Following this, companies listed on both the stock exchanges have been directed to hold annual general meetings, special general meetings and board meetings on digital platforms. After Corona, it was again directed to hold meetings on hybrid and digital platforms. Companies are currently organizing various meetings following that directive.