The Bangladesh Securities and Exchange Commission (BSEC) is going to recast the board of directors of Simtex Industries Limited – a manufacturer of sewing threads – to minimise the company's internal conflicts so that it can move on with its business activities.
Accordingly, the BSEC has decided to remove three directors – two independent and one nominated – of the company and appoint five independent directors. The commission is going to issue a directive in this regard very soon.
The independent directors to be appointed are; Shobod Deba Nath PhD, Associate Professor, University of Dhaka, Kawser Ahmed, Partner, The Zurist, Dhaka, Dr Md Abdul Kaium, Associate Professor, University of Barishal, Abid Al Hasan, Business Entrepreneur, and Sheikh Mamun Khaled, PhD.
The BSEC has also recommended Sheikh Mamun Khaled for the post of the chairman of Simtex.
On the other hand, the three directors to be removed are; independent directors Md Akram Hossain, and Shah Md Asad Ullah and nominated director Sharif Shahidul Islam.
Simtex Industries was listed on the bourses in 2015. Its principal activity is to dye and wind sewing thread.
In the 2019-20 fiscal year, the company reported a massive year-on-year decline in both its revenue and profit. In FY20, revenue dropped 17.8% to Tk119.09 crore, and net profit plunged by 70.7% to Tk4.45 crore, compared to FY19.
But in the 2020-21 and 2021-22 fiscal years, the company posted business growths.
And, in the July to December period of 2022, its revenue stood at Tk78.74 crore, which was Tk66.38 crore in the same period of the previous year. Its net profit stood at Tk3.59 crore and earnings per share at Tk0.45.
In August 2022, Lieutenant Colonel Md Anisur Rahman (retd), former chairman of Simtex Industries, filed a complaint against his business partner Siddiqur Rahman – founder of the company – to the BSEC over conflicts regarding the company's management.
Anisur Rahman said he was asked to resign in an unscheduled board meeting on 17 August.
He alleged that he was removed from the post of chairman for protesting against illegal and unethical activities, and that he even received death threats.
After these complaints from the former chairman, and also some from the shareholders, the BSEC formed an inquiry committee to look into the issues.
A senior official of the BSEC said seeking anonymity, the commission found that the company had failed to present documents against expenses properly.
The reporter tried to reach Simtex's Company Secretary Ashis Kumar Saha over phone, but he did not receive the calls.