DHAKA: The High Court Thursday rejected writ petitions filed by 24 directors challenging section 2CC of Securities Exchange Commission (SEC) ordinance that allows the regulator to ask for minimum shareholding.
The HC order again makes valid the SEC circular for holding two percent stake in their companies by individual directors and 30 percent by sponsor-directors together.
An HC bench comprising Justice Hasan Foez Siddique and Justice Jahangir Hossain Selim issued the order after hearing the petitions for day five.
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.
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.
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: 1701 HRS, JUN 21, 2012
Edited by: Rubaiat Saky, Newsroom Editor
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