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The government will give businesses as much time as they need to review and provide feedback on the proposed amendments to the Companies Act, 1994, Commerce and Industry Minister Khandaker Abdul Muktadir has said.
The government has initiated the amendment process to ease doing business and create a more investment-friendly environment, while seeking to incorporate the views and practical experience of the business community.
The minister made the remarks as the chief guest at a consultation meeting on the draft amendments to the Companies Act, 1994, held at the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) office in Motijheel on Monday.
Addressing business leaders, Muktadir said they could take 30 days if they needed 30 days, or 60 days if they needed 60 days, to review the draft and submit their recommendations.
“At the same time, there are many other important programmes and reform initiatives before the government,” he said.
The minister said the Companies Act was enacted in 1994 and had since been amended twice. Significant changes had taken place in the nature of business and trade, technology and corporate management practices over the years, making it necessary to update the law in line with current realities.
He also stressed the importance of considering the experience of other countries when amending the law. Bangladesh could examine the legal frameworks and practical implementation in countries where business regulations and procedures are relatively simple and effective and adopt approaches suitable for the country, he said.
The proposed amendments should be compared with company laws in other countries, Muktadir said, adding that it was important to examine how similar provisions were being implemented elsewhere and incorporate recommendations based on the practical experiences of local businesses.
“The government wants to formulate a law that will help create a better business environment in the country, based on your recommendations,” he told business representatives.
Although enacting and amending company law is the government’s responsibility, its implementation would largely affect the private sector, he said. The law should therefore enable entrepreneurs to conduct business easily, smoothly and transparently while ensuring accountability in its enforcement.
Muktadir said the private sector was one of the main drivers of Bangladesh’s economy. It was therefore essential to reduce the legal and institutional complexities faced by entrepreneurs and improve the investment and business environment through joint efforts by the government and private sector.
Speaking about the country’s current economic situation, the minister said Bangladesh was going through a period of transition and transformation.
Both the public and private sectors were having to operate amid various constraints, he said, adding that the government had limited reserves and no fiscal or budget surplus and therefore had to address multiple challenges with limited resources.
Businesses, too, were facing considerable pressure and challenges, he said, urging all concerned not to rush but to move forward patiently with long-term plans.
The current period of crisis and transition should instead be used to build a stronger economic foundation for the future, he said.
Muktadir also highlighted the preparations for Bangladesh’s graduation from the Least Developed Country (LDC) category, saying the country would have to address several important challenges over the next three years.
Amending the Companies Act was only one of hundreds of components of the broader reform and transition process, he said.
“Business representatives can take their time to thoroughly review the draft. However, the government expects practical and effective recommendations from them,” he said.
The consultation was chaired by FBCCI Administrator Fazlul Haque. Former Metropolitan Chamber of Commerce and Industry (MCCI) president Barrister Nihad Kabir presented the keynote paper on the proposed amendments.
Senior representatives of various business and industry organisations attended the meeting, including BGMEA President Mahmud Hasan Khan, BKMEA President Mohammad Hatem, DCCI President Taskin Ahmed, BTMA President Shawkat Aziz Russell, Bangladesh Chamber of Industries President Anwar-ul Alam Chowdhury (Parvez), Apex Managing Director Syed Nasim Manzur, BARVIDA President Abdul Haq and Transcom CEO Simin Rahman.
Business representatives presented their views and recommendations on various aspects of the proposed amendments. They called for changes aimed at reducing the complexities of doing business, shortening decision-making processes and improving the investment climate.