Company Law in Bangladesh

The Companies Act 1994 is an important legislation governing the formation, operation, management, and dissolution of companies in Bangladesh. It provides the legal framework for the establishment and regulation of various types of companies, including private limited companies, public limited companies, and other forms of corporate entities. Here are some key features and provisions of the Companies Act 1994:

1. Company Formation: The Act sets out the procedures and requirements for the incorporation of companies, including the registration process, submission of documents, and payment of fees.

2. Types of Companies: The Act defines different types of companies, such as private limited companies, public limited companies, one person companies and companies limited by guarantee etc. Each type has its own characteristics, requirements, and restrictions.

3. Share Capital and Shareholders: The Act regulates the issuance, allotment, transfer, and forfeiture of shares. It outlines the rights and obligations of shareholders, including voting rights, dividends, and shareholder meetings.

4. Directors and Management: The Act establishes the roles, responsibilities, and qualifications of directors. It covers matters such as the appointment, removal, and resignation of directors, their powers and duties, and the disclosure of interests.

5. Corporate Governance: The Act emphasizes good corporate governance practices, including the requirement for annual general meetings, financial reporting, and auditing. It also addresses related-party transactions, insider trading, and disclosure requirements.

6. Accounts and Audit: The Act mandates the preparation and maintenance of financial statements, including balance sheets, profit and loss accounts, and cash flow statements. It also requires companies to appoint auditors to conduct independent audits of their financial records.

7. Corporate Restructuring and Insolvency: The Act provides provisions for mergers, acquisitions, and amalgamations of companies. It also includes regulations for company reorganization, liquidation, and winding up in cases of insolvency or dissolution.

8. Investor Protection: The Act aims to protect the interests of shareholders and stakeholders by imposing disclosure requirements, preventing fraudulent practices, and providing mechanisms for shareholders’ remedies and grievances.


Comments are closed


Latest Comments

No comments to show.