Independent directors allowed to stay at Simtex board
The chamber judge of the appellate division has allowed the independent directors, who were appointed at Simtex Industries board by the securities regulator, to continue at the company's board.
The appellate division ordered the status quo in this regard on Monday.
Barrister Sayed Mahsib Hossain, a lawyer for the Bangladesh Securities and Exchange Commission (BSEC), told TBS that the high court earlier passed stay orders in three separate writ petitions that were filed against the regulator's decision to recast the Simtex board.
Following BSEC's plea, the chamber judge on Monday ordered to maintain the status quo allowing the regulator-appointed independent directors to continue.
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The chamber judge, however, asked for a hearing at the bench of Justice Farah Mahbub.
The publicly listed manufacturer of sewing thread had been in an internal conflict among directors over the control of the company. And, the conflicting groups had been complaining against each other.
One group led by the company's former Chairman Lt Col (retd) Anisur Rahman alleged that the other group was embezzling company funds through non-transparent spending. And after protests against those, they were forcefully ousted from the board.
Later, the opponent group having control over the company in August-September last year, filed cases against Rahman and his followers complaining of attacking the company's factory at Birulia's Khagan area at Savar, Dhaka.
The BSEC, later in March this year, recast the board of directors through removing two independent directors along with a nominated director and appointing five independent directors including professors, lawyers and an entrepreneur.
Simtex Industries was listed on the bourses in 2015. In the 2019-20 fiscal year, the company's revenue dropped 17.8% year-on-year to Tk119.09 crore, and net profit plunged by 70.7% to Tk4.45 crore.
But in the 2020-21 and 2021-22 fiscal years, the company posted business growths.
Simtex shares closed 1.7% higher at Tk23.7 apiece at the Dhaka Stock Exchange on Monday.
