Writ hearing against SEC resumes

DHAKA: The hearing on writ filed by 24 directors challenging section 2CC of Securities Exchange Commission (SEC) resumed on Thursday morning.

An HC bench comprising Justice Hasan Foez Siddique and Justice Jahangir Hossain Selim started the hearing at about 11am for day five.

On Wednesday, the High Court adjourned the day-four hearing on writ filed by 24 directors challenging section 2CC of Securities Exchange Commission (SEC) till June 21 (Thursday).

On June 4, the High Court issued a rule upon SEC authorities to explain within one week why section 2 CC of its ordinance-1969 should not be declared unconstitutional.

The same bench passed the order as the hearing on a writ petitions filed by sponsors and directors of listed firms challenging the section ended Sunday.

The SEC issued a mandatory shareholding directive under Section 2CC of the ordinance.

As per the SEC directive, sponsors and directors of listed companies will have to hold at least 30 percent jointly and 2 percent individually in companies.

On May 22, directors of five companies filed separate writ petitions with the HC in this connection.

On May 21, the High Court declared valid the SEC circular for holding two percent stake in their companies by individual directors and 30 percent by sponsor-directors together.

On November 22, the SEC in a meeting decided that sponsors, promoters and directors must hold 30 percent stake in listed companies within six months which is expiring May 21 (Monday).

Later on April 8, Sheikh Abdul Momin, who applied to be a director of the NCCBL, had filed a writ petition challenging the legality of the SEC circular. Besides, a number of directors of Delta Life Insurance and Social Islami Bank Limited also filed the same pleas.

BDST: 1251 HRS, JUN 21, 2012

Edited by: Rubaiat Saky, Newsroom Editor