FROM PAGE b1

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

They are former senior secretary Mohammad Shahidul Haque, Prashanta Kumar Banarjee from the Bangladesh Institute of Bank Management, University of Dhaka associate professor Santus Kumar Deb, and assistant professors Mohammad Golam Sarwar and Sajib Hossain.

Haque was made the board’s chairman.

The former directors shall not be allowed to represent and be elected as directors, and the shares they hold shall not be free for offloading until further notice, said the letter.

The BSEC appointed directors to the other five companies for almost the same reasons.

C&A Textiles has been incurring losses since 2017 and its sponsors jointly hold less than 30 per cent stake in the company.

Flight activities of United Airways has been suspended for the past five years. Its sponsors jointly hold less than 5 per cent of shares.

Familytex (BD) has been incurring losses for around five years, and its sponsors hold less than 5 per cent shares jointly as well.

The BSEC restructured the board of Alhaj Textile Mills as its sponsors were together holding 12.78 per cent of shares.

The stock market regulator appointed the directors who are reputed in the sector for their efficiency, so investors are hoping for the companies to make a turnaround, said a stock broker.

“This is a good step for the betterment of the stock market,” he said, adding that even if a few make a comeback, it would be great news.