The High Court postponed NRBC Bank’s annual general meeting slated for today, following a writ petition alleging irregularities at the bank.
The HC also instructed the Bangladesh Securities Exchange Commission (BSEC) to show cause as to why it should not be directed to send a number of its senior officials as observers of the annual general meeting and ensure that it is held in a transparent manner.
Today’s NRBC Bank meeting was supposed to be held in-person and virtually.
A group of sponsor shareholders sent a letter dated May 14, 2024, to BSEC asking it to ensure the AGM is held in a transparent manner, shareholders are present in person, and that they are not under duress.
The writ petition — filed by Sunahwar Ali, the son of the bank’s sponsor shareholder Wajid Ali — alleged that the BSEC chairman failed to note the letter. The hybrid, in person and virtual, AGM meeting was approved by the BSEC.
In the writ petition, he alleged that a digital AGM allows for those present in person to gain undue advantage.
It alleged that the last 7 annual general meetings were purposely designed to limit the participation of the shareholders through digital platforms, and therefore the majority of the shareholders could not participate.
The HC order, passed by the bench of Justice Mustafa Zaman Islam and Justice SM Masud Hossain Dolon, directed all respondents of the writ, including the bank’s current chairman Tamal SM Parvez, to show cause as to why they should not be instructed to hold a transparent AGM with full participation of all shareholders, where no one feels that they are under duress.
They were directed to respond within four weeks. The AGM was postponed till the end of the month.
