The Bangladesh Securities and Exchange Commission (BSEC) has again reconstructed the board of scam-hit Fareast Islami Life Insurance Company Ltd.
The regulator on Thursday has approved two new shareholder firms Tradenext International Ltd and Jupiter Business Ltd, a sponsor firm Fareast Securities Ltd and an individual sponsor Al-Haj Md Helal Uddin Miah to join the board.
Tradenext International is holding 9.91% shares of Fareast Life and Jupiter Business Ltd is holding 9.9% shares.
Ensuring at least 2% shares, the corporate directors might nominate more than one director to the Fareast Islami Life's board.
The BSEC also revoked the previous board of 10 independent directors formed last September.
Six newly appointed independent directors are - Sheikh Kabir Hossain, Dr Lafifa Jamal, Mozammel Haque, Md Ibraheem Hosein Khan, Sheikh Mamun Khaled, and Md Rafiqul Islam.
BSEC said it applied its 2CC power, which allows it to bypass other laws for the greater interest of the investors and the market, to approve the board reconstruction.
The company will have to get retrospective approval of the board reconstruction in the next shareholders' general meeting.
Sponsor and directors' shares in Fareast Life will remain blocked so that those cannot be traded without prior announcement and also the sponsor-directors will have to collectively ensure 30% shareholding in the company, BSEC said in its approval letter.
Fareast Islami Life, once a top life insurance premium earner in the industry, has been in a tight corner following a cumulative embezzlement of over Tk2,000 crore by some of its previous directors and collaborating officials.
It is in a serious struggle to clear insurance claims worth at least Tk1,000 crore amid a fund crisis.
Sources said, Tradenext and Jupiter are going to nominate three Beximco Group officials along with Shanta Asset Management Vice Chairman Arif Khan to the Fareast Life board.