Corporate Law at Bangladesh
Corporate law in Bangladesh is the body of laws, regulations, and practices governing the formation, operation, and regulation of companies and corporations within the country. It deals with aspects such as company formation, management, shareholder rights, mergers and acquisitions, corporate governance, compliance, and dissolution.
Here’s a brief overview of Corporate Law in Bangladesh:
1. Governing Legislation
Companies Act, 1994: This is the primary legislation regulating companies in Bangladesh. It covers the incorporation, regulation, and winding up of companies.
Bangladesh Securities and Exchange Commission Act, 1993: Regulates securities, capital markets, and listed companies.
Bangladesh Bank Regulations: For financial institutions and banks.
The Bangladesh Investment Development Authority (BIDA) regulations and incentives for companies.
Various other laws impact corporations, such as labor law, tax law, environmental regulations, and the Insolvency Act.
2. Types of Companies
Private Limited Company (Ltd.): Most common for small and medium enterprises; restricted number of shareholders.
Public Limited Company (PLC): Can raise capital from the public and are listed on stock exchanges.
One Person Company (OPC): A relatively newer concept allowing a single individual to form a company.
Foreign companies operating in Bangladesh must comply with local registration rules.
3. Company Formation
Registration through the Registrar of Joint Stock Companies and Firms (RJSC).
Documents required include Memorandum of Association, Articles of Association, and details of shareholders and directors.
Digital processes have been introduced for ease of registration.
4. Corporate Governance
Compliance with reporting, auditing, and disclosure requirements.
Board of directors’ responsibilities and duties are outlined in the Companies Act.
Minority shareholder protections and related party transactions are regulated.
5. Regulatory Bodies
Registrar of Joint Stock Companies and Firms (RJSC): Oversees company registration and regulation.
Bangladesh Securities and Exchange Commission (BSEC): Regulates capital markets and listed companies.
Bangladesh Bank: Regulates financial institutions.
6. Recent Developments
Digitalization of corporate filing and registration.
Strengthening of investor protection laws.
Introduction of more flexible corporate structures to attract foreign investment.
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