‘Legal and Ethical issues in Business in Bangladesh’
❖ THREE LEGAL ISSUES IN BUSINESS IN BANGLADESH
1. Environmental Law in Bangladesh
1. Environmental Law in Bangladesh
“Bangladesh Environment Conservation Act”
Bangladesh Environment Conservation Act (BECA) is set of laws enacted by the government of Bangladesh in 1995. The Act gives operational definitions of terms that historically did not exist in the legal regime of the country, including ecosystem, pollution, waste and hazardous substance. Seven areas in Bangladesh are defined as Ecologically Critical Areas under this law beyond the scope of the Forest Act of 1927 enacted by the British Raj. Other major preservation laws enacted by the government of Bangladesh include the Bangladesh Wild Life (Preservation) Order of 1973, the Marine Fisheries Ordinance of 1983 and the Brick Burning (Control) Act of 1989. Other major preservation laws enacted before the independence of Bangladesh include the Public Parks Act of 1904, the Agricultural and Sanitary Improvement Act of 1920, the Protection and Conservation of Fish Act of 1950. In September 2009, the four rivers around the capital city Dhaka - Buriganga River, Shitalakshya River, Turag River and Balu River -- have been declared by the Department of Environment as ECAs. The Act followed the establishment of the Ministry of Environment and Forest in 1989 and the National Environment Management Action Plan (NEMAP) in 1992, as well as the Forest Policy in 1994 and the Forestry Master Plan (1993–2012) in 1993. Despite the Act and its supporting laws and policies the environmental degradation of Bangladesh continues principally under the population pressure.
2. Zoning in Bangladesh
Zoning is a restriction on the way that land can be used. It allows governments to control the development of communities and ensure they are functional and safe places. Without zoning, a gun store could not open up next to a school, an adult club next to a playground, and a busy store on your residential street. Zoning prevents these things from happening and by doing so; it protects property values and ensures communities work in an orderly fashion.
The Bangladesh Export Processing Zone Authority (BEPZA) is an agency of the Government of Bangladesh and is administered out of the Prime Minister's Office. Its objective is to manage the various export processing zones in Bangladesh. BEPZA currently oversees the operations of five export processing zones (EPZ). A sixth zone is scheduled to open in the future. The Government provides numerous incentives for investors for opening factories in EPZs. For example, new factories enjoy tax holidays for 5 years. Also, labor unions and other activities that are often viewed detrimental to productivity are banned inside the EPZs. 3. Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organization, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor. • Bankruptcy in business in Bangladesh
The first bankrupt bank in Bangladesh is ‘Oriental Bank ltd (present ICB MUTUAL BANK)’
Oriental Bank got approval in 1987 and from the very beginning it fell into trouble due to its owners' insider lending, corruption and mismanagement. In 1994 the Bangladesh Bank enlisted seven banks as problematic ones, Oriental was included among them. Six of them already came out of the status of problem banks, but Oriental continued as the only problem bank and its condition was deteriorating day by day. In December 2001 Oriental's accumulated loss stood at Tk. 86.34 crore which climbed up to Tk. 450 crore in March 2006. By the end of March 2006 the bank's overall capital deficit stood at Tk. 877 crore. Only four out of 30 private commercial banks have provisional shortfall. Three of them have a...
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