The government will formulate a modern and business-friendly company law after taking into account the views and recommendations of businesses and entrepreneurs, Commerce and Industry Minister Khandaker Abdul Muktadir said today.
The existing Company Act was enacted in 1994 and amended twice, but it now needs to be updated to reflect emerging realities such as artificial intelligence (AI), automation and online information exchange, he said.
“Considering the current context, the existing law needs to be made more up-to-date,” the minister said, suggesting that Bangladesh could draw on examples from countries where business-related laws and regulations are being implemented effectively.
He made the remarks while addressing a consultation meeting on the draft third amendment to the Companies Act, 1994, held at the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) office in Motijheel today.
FBCCI Administrator Md Fazlul Hoque chaired the meeting.
The minister said Bangladesh would face a number of challenges over the next three years as part of preparations for graduation from the least developed country (LDC) category.
“Amending the Company Act is only one of many components of the government’s broader action plan,” he said.
The proposed amendment aims to modernise the law and bring it closer to global standards, with five key objectives identified: simplifying business operations, creating greater opportunities for small and medium-sized entrepreneurs, ensuring wider use of information technology, providing a legal basis for corporate social responsibility (CSR), and strengthening good governance in business.
Mohammad Mostafa Jamal Haider, director general (joint secretary) of the Trade Organisation Wing of the Ministry of Commerce, presented the key objectives, proposed changes and rationale behind the draft amendment.
Barrister Nihad Kabir, former president of the Metropolitan Chamber of Commerce and Industry (MCCI), presented proposals from the private sector.
International Chamber of Commerce, Bangladesh President and former FBCCI president Mahbubur Rahman welcomed the government’s consultation with the private sector before finalising the amendment.
“In the past, we have seen policies being adopted without consultation with the private sector,” he said.
He also observed that the Company Act is the principal law governing business operations and argued that no other law should take precedence over it in regulating companies.
Md Nur-e-Alam, additional registrar of the Registrar of Joint Stock Companies and Firms (RJSC), said the agency’s intellectual capacity must be strengthened alongside infrastructure development.
“Amending the law alone will not be enough,” he said.
Syed Nasim Manzur, managing director of Apex Footwear Ltd, emphasised the need to ensure data security when businesses submit information to the RJSC online.
He also called for greater professionalism among RJSC officials in delivering services.
Business leaders at the meeting sought an additional 30 days to submit sector-wise assessments and recommendations on the proposed third amendment to the Company Act.
In response, the commerce minister said stakeholders would be given a reasonable amount of time to review the draft and provide their views.
He urged business leaders to submit their recommendations promptly so that the government could work towards enacting an effective and business-friendly law.
The meeting was attended by BGMEA President Mahmud Hasan Khan, BKMEA President Mohammad Hatem, DCCI President Taskin Ahmed, BTMA President Shaukat Aziz Russell, MCCI President Kamran T Rahman, Bangladesh Chamber of Industries President Anwar-ul Alam Chowdhury (Parvez), BARVIDA President Abdul Haque and Transcom Chief Executive Officer Simin Rahman, among others.
Former FBCCI directors, members of FBCCI’s supporting committees and leaders of various chambers and business associations also attended the consultation.
