Urgent Call to Modernize the Antiquated Companies Act of 1994 by Experts
The Companies Act 1994 is under the spotlight in Bangladesh as experts and stakeholders call for its urgent reform. The current law, they argue, is outdated and inadequate for addressing the needs of the modern economy and the evolving business environment.
The call for modernization is focused on aligning the law with contemporary corporate practices and international norms to better facilitate exports, investment, and economic activity. This was the central theme of a recent workshop held at the DCCI auditorium, where speakers emphasized the necessity of revising the legislation to support the expanding and diversifying business community in Bangladesh.
The workshop, titled 'Importance of Board Meeting, AGM, EGM and Compliance of Limited Companies', was attended by key figures such as AKM Nurunnabi Kabir, Registrar (Additional Secretary) of Joint Stock Companies and Firms (RJSC), Md Salem Sulaiman, Vice President of DCCI, and Md Selim Reza, FCA, Partner at Artisan Chartered Accountants, among others.
RJSC Registrar Nurunnabi Kabir noted that over 2 lakh 75 thousand business entities are currently registered with the RJSC. He highlighted that most registration services are now available online through the RJSC, a move aimed at streamlining the registration process and making it more accessible.
Mohammed Sanaullah, CEO and Lead Consultant at Sanaullah & Associates, also presented a keynote paper at the workshop. He underscored the importance of businesses complying with relevant laws and regulations, emphasizing that compliance helps build trust, credibility, and curb malpractice and misuse.
DCCI President Taskeen Ahmed stressed the importance of institutional transparency, accountability, and good governance in managing limited companies. He urged business owners to train their staff in the relevant provisions of the Companies Act, Articles of Association, securities law, and related legislation.
The rapid economic growth in Bangladesh and increasing global competition make strict adherence to compliance standards more crucial than ever. Both speakers called for reforming the Companies Act 1994 to align with current business realities. The government is gradually recognizing the need for such legislative reforms to support economic development comprehensively.
The workshop aimed to provide clarity on key areas including board meetings, annual and extraordinary general meetings, proper procedures for timely compliance, and constructive engagement with regulatory bodies. DCCI Senior Vice President Razeev H Chowdhury was also present at the event.
In summary, the current discussion centers on reforming the Companies Act 1994 to make it more relevant and effective for Bangladesh's modern economic context, with broad expert agreement on the urgency of this process. The revised legislation, if implemented, is expected to foster better governance, transparency, and easier compliance for companies, thereby unlocking more growth opportunities and attracting investment.
The workshop underscored the necessity of reforming the Companies Act 1994 to facilitate contemporary business practices and foster economic growth in Bangladesh. Experts advocate for aligning the law with international norms to improve exports, investment, and overall business activity.
The Revised Companies Act, if implemented, is expected to promote compliance, transparency, good governance, and attract investment, thereby unlocking more growth opportunities for the business community in Bangladesh.
