Legal Updates

The Financial Reporting Council (FRC), a regulatory body under the Financial Reporting Act (FRA) 2015 recently issued a notification in this regard on 11 February 2020 (Gazette published on 2 March 2020). This notification was issued as a number of listed companies have misused the share money deposit to manipulate their performance.

Equity investment from foreign shareholders (kept as share money deposit) in a Bangladeshi registered company must be converted into shares within 1 year from the date of receipt. On February 05, 2020, Bangladesh Bank issued FEID Circular No. 02 to this effect. Previously there was no time limit to convert the share money deposit of the foreign shareholders into shares.

For enthusiasts and businesses involved in the fascinating world of pet birds in Bangladesh, adhering to the latest regulations is crucial for responsible ownership and legal operations. The Ministry of Environment, Forest and Climate Change’s Pet Bird Management Rules, 2020, enacted under the Wildlife (Conservation and Security) Act, 2012, provide a comprehensive framework for the management of pet birds. Published in the Bangladesh Gazette on January 18, 2020, these rules cover various aspects, from keeping individual birds to operating commercial farms and pet shops.

For airline operators and organizations involved in air travel within Bangladesh, understanding the regulations governing flights on routes not covered by regular schedules is paramount. The Ministry of Civil Aviation and Tourism’s Unscheduled Route Flight Operations Policy, 2020, published in the Bangladesh Gazette on January 29, 2020, provides a framework for such operations. This blog post offers an overview of the key aspects of this policy.

For businesses involved in facilitating overseas employment from Bangladesh, staying abreast of the latest regulations is not just a legal necessity, but crucial for ethical and compliant operations. The Overseas Employment and Migrants (Recruiting Agent License and Conduct) Rules, 2019, enacted under the authority of the Overseas Employment and Migrants Act, 2013, introduced significant provisions governing the licensing and conduct of recruiting agents. This blog post provides an overview of the key aspects of these rules.

Bangladesh Parliament on 12 May 2016, passed the “Civil Courts (Amendment) Act, 2016”. It will amend the Civil Courts Act, 1887. It will expand the monetary jurisdiction of lower court judges.

All economic zones and all entities established in the economic zone in Bangladesh are exempted from the requirements of Board of Investment. They are also exempted from the taxation of Local Government (Pourosova). Bangladesh government on 25th April 2016 published two gazettes in this regard.

Non-Banking Financial Institution can now hold board meeting, executive committee meeting or audit committee meeting through video conference if necessary while their chairman or any director are staying outside Bangladesh. However, they must obtain prior approval of Bangladesh Bank.

Non-banking financial institutions (FI) can now invest in the non-listed special purpose funds (e.g. Alternative Investment Fund, Special Purpose Vehicle, or any other similar fund) which are registered with Bangladesh Securities and Exchange Commission (BSEC). Through DFIM Circular No.04 dated 30 March 2016, Bangladesh Bank allows such investment.

Physical presence of the shareholder is now compulsory for transfer of shares. By a circular on March 27, 2016, the Registrar of Joint Stock Companies and Firms (RJSC) impose this condition. Main goal of the circular is to prevent fraud relating to transfer of shares.