Star Business Report

The Bangladesh Securities and Exchange Commission (BSEC) yesterday dissolved the board of Emerald Oil and formed a new one in a bid to improve its performance.

The listed edible oil producer is the sixth company whose boards were created anew as per a decision taken by the regulator earlier.

The previous five companies were C&A Textiles, Ring Shine Textiles, United Airways, Familytex (BD) and Alhaj Textile Mills.

The BSEC last year decided to bring about the change if any company remained in losses for at least two years, or if company sponsors fail to hold at least 30 per cent of shares jointly.

Emerald Oil’s stocks were being traded as junk since 2017 due to the incurring of losses and announcement of no dividend, showed Dhaka Stock Exchange (DSE) data.

The company was transferred to the “Z” category in January 2018.

Its board of directors did not initiate any action and, therefore, failed to improve its performance during the last four years, the BSEC said in letters sent to the directors.

Emerald Oil also failed to declare any cash dividend and hold annual general meetings within the stipulated time, while it appears that the company is not appropriately growing, read the letter.

“This is detrimental to the interest of the investors and undesirable to the commission,” said the BSEC, explaining the appointment of five new directors.