Summarazation of Code of Corporate Governance of Bangladesh Essay Sample
Since the early 1990s. Corporate Administration has been having increasing attending from regulative organic structures and practicians worldwide. Corporate sectors are still in its initial phase ; nevertheless consciousness of the importance of CG is turning. Bangladesh’s little size and deficiency of natural resources have necessitated an unfastened trade policy. Bangladesh besides has a broad policy towards foreign direct investing ( FDI ) . However. when compared to those of the India. Sri Lanka. Pakistan. Thailand and Malaysia. CG in pattern and doctrine have up till now remained comparatively under-developed in Bangladesh. To regulate the corporate environment in Bangladesh. following legal steps are in pattern: • Securities and Exchange Ordinance 1969
• Bangladesh Bank Order 1972
• Bank Companies Act 1991
• Financial Institutions Act 1993
• Securities and Exchange Commission Act 1993
• Companies Act 1994
• Bankruptcy Act 1997
BOARD OF DIRECTORS:
The figure of the board members of the company shall non be less than 5 ( five ) and more than 20 ( 20 ) . All companies shall promote effectual representation of independent managers on their Board of Directors so that the Board.
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as a group. includes nucleus competences considered relevant in the context of each company. The places of the Chairman of the Board and the Chief Executive Officer of the companies shall be filled by different persons. The Chairman of the company shall be elected from among the managers of the company. The Board of Directors shall clearly specify several functions and duties of the Chairman and the Chief Executive Officer.
Chief Financial Officer ( CFO )
The company should name a Chief Fiscal Officer ( CFO ) . a Head of Internal Audit for whom the Board of Directors should clearly specify several functions. duties and responsibilities. The CFO of the companies should go to meetings of the Board of Directors. AUDIT COMMITTEE:
The company shall hold an Audit Committee as a sub-committee of the Board of Directors. The Audit Committee shall help the Board of Directors in guaranting that the fiscal statements reflect true and just position of the province of personal businesss of the company and in guaranting a good monitoring system within the concern. The Audit Committee shall be responsible to the Board of Directors. The responsibilities of the Audit Committee shall be clearly set Forth in authorship.
Chairman of the Audit Committee:
The Board of Directors shall choose 1 ( one ) member of the Audit Committee to be Chairman of the Audit Committee. who shall be an independent manager. Chairman of the audit commission shall stay present in the Annual General Meeting ( AGM ) .
Coverage of the Audit Committee:
The Audit Committee shall describe on its activities to the Board of Directors. If the Audit Committee has reported to the Board of Directors about anything which has material impact on the fiscal status and consequences of operation and has discussed with the Board of Directors and the direction that any rectification is necessary and if the Audit Committee finds that such rectification has been unreasonably ignored. the Audit Committee shall describe such happening to the Commission. upon describing of such affairs to the Board of Directors for three times or completion of a period of 6 ( six ) months from the day of the month of first coverage to the Board of Directors. whichever is earlier. Report on activities carried out by the Audit Committee. including any study made to the Board of Directors under status 3. 4. 1 ( two ) above during the twelvemonth. shall be signed by the Chairman of the Audit Committee and disclosed in the one-year study of the issuer company. External/Statutory Hearers
The issuer company should non prosecute its external/statutory hearers to execute the undermentioned services of the company ; viz. : -Appraisal or rating services or fairness sentiments. Fiscal information systems design and execution. Book-keeping or other services related to the accounting records or fiscal statements. Broker-dealer services. Internal audit services and any other service that the Audit Committee determines.