Summarazation of Code of Corporate Governance of Bangladesh
"Summarazation of Code of Corporate Governance of Bangladesh"
Introduction
Since the early 1990s, Corporate Governance has been receiving increasing attention from regulatory bodies and practitioners worldwide. Corporate sectors are still in its initial stage; nevertheless awareness of the importance of CG is growing. Bangladesh's small size and lack of natural resources have necessitated an open trade policy. Bangladesh also has a liberal policy towards foreign direct investment (FDI). However, when compared to those of the India, Sri Lanka, Pakistan, Thailand and Malaysia, CG in practice and philosophy have up till now remained relatively under-developed in Bangladesh. To govern the corporate environment in Bangladesh, following legal measures are in practice:
• Securities and Exchange Ordinance 1969
• Bangladesh Bank Order 1972
• Bank Companies Act 1991
• Financial Institutions Act 1993
• Securities and Exchange Commission Act 1993
• Companies Act 1994
• Bankruptcy Act 1997
BOARD OF DIRECTORS:
The number of the board members of the company shall not be less than 5 (five) and more than 20 (twenty). All companies shall encourage effective representation of independent directors on their Board of Directors so that the Board, as a group, includes core competencies considered relevant in the context of each company. The positions of the Chairman of the Board and the Chief Executive Officer of the companies shall be filled by different individuals. The Chairman of the company shall be elected from among the directors of the company. The Board of Directors shall clearly define respective roles and responsibilities of the Chairman and the Chief Executive Officer.
Chief Financial Officer (CFO)
The company should appoint a Chief Financial Officer (CFO), a Head of Internal Audit for whom the Board of Directors should clearly define respective roles, responsibilities and duties. The CFO of the companies should attend meetings of the Board of Directors.
Introduction
Since the early 1990s, Corporate Governance has been receiving increasing attention from regulatory bodies and practitioners worldwide. Corporate sectors are still in its initial stage; nevertheless awareness of the importance of CG is growing. Bangladesh's small size and lack of natural resources have necessitated an open trade policy. Bangladesh also has a liberal policy towards foreign direct investment (FDI). However, when compared to those of the India, Sri Lanka, Pakistan, Thailand and Malaysia, CG in practice and philosophy have up till now remained relatively under-developed in Bangladesh. To govern the corporate environment in Bangladesh, following legal measures are in practice:
• Securities and Exchange Ordinance 1969
• Bangladesh Bank Order 1972
• Bank Companies Act 1991
• Financial Institutions Act 1993
• Securities and Exchange Commission Act 1993
• Companies Act 1994
• Bankruptcy Act 1997
BOARD OF DIRECTORS:
The number of the board members of the company shall not be less than 5 (five) and more than 20 (twenty). All companies shall encourage effective representation of independent directors on their Board of Directors so that the Board, as a group, includes core competencies considered relevant in the context of each company. The positions of the Chairman of the Board and the Chief Executive Officer of the companies shall be filled by different individuals. The Chairman of the company shall be elected from among the directors of the company. The Board of Directors shall clearly define respective roles and responsibilities of the Chairman and the Chief Executive Officer.
Chief Financial Officer (CFO)
The company should appoint a Chief Financial Officer (CFO), a Head of Internal Audit for whom the Board of Directors should clearly define respective roles, responsibilities and duties. The CFO of the companies should attend meetings of the Board of Directors.