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Govt plans new body to deal with sick units
The government ts actively considering enacting a law that will vest all powers In a statutory body to decide the fate of sick Industries.
Official sources told UNB yesterday that the proposed law was being framed in such a way as will provide for measures to Identify sick' Industries, ease by ease, by the proposed Impartial body which will recommend ways and means of reviving and rehabilitating sick Industries.
The law, meant to institutionalise the task of dealing with sick Industry, may be titled "Companies (sick industries) Protection Act 1992,’ the sources Indicated.
An all-powerful board has been proposed to execute the law. It will consist of a Chairman and members numbering not less than 2 and more Ihan 14.
The board will have the authority to determine whether an industry is really sick or not.
A definition of sick industry Is also being given In the law: A sick industry being one registered for not less than six years which at the end of any financial year had incurred loss equivalent to 50 per cent or more of Its entire net worth.
The board will diagnose sickness and determine measures for restoration, revival and rehabilitation of the Industry.
Even, the board will have to power to decide liquidation of sick industries If it finds those non-viable.
All relevant laws, rules and regulations, circulars, government gazette notifications have been proposed to be amended or codified to give the board
supreme authority to determine the fate of any sick industry.
The board may recommend to the government legal action, both in civil and criminal procedures, against any person if found willfully making his industry sick.
There shall, however, be an appellate authority for hearing appeal against the orders of the board.
The members to be appointed by the government will be such persons as arc or qualified to be Supreme Court judges or have special knowledge and vast professional experience in science, technology, economics, banking, industrial management, marketing and so on.
No civil court, as the law proposes, will have any jurisdiction in respect of any matter to be decided by the board or the appellate authority.
Also no injunction will be granted by any dourt or other authority in respect of any action taken or to be taken under the proposed law.
The owner of any sick industry, if found violating directives of the board or making • false statements about his Industry, will be punished ranging up to three years of imprisonment.
Sickness has become the
single major problem for Industries in Bangladesh. According to unofficial figures, more than 60 per cent of the existing Industrial units arc now in sicked.
The new legislation comes in the wake of government move for a thorough reforms of the moribund economy to revitalise it.