Experts Urge Reform of Outdated Companies Act 1994

DCCI President Taskeen Ahmed and other experts at a workshop at the DCCI auditorium in Dhaka on Saturday.

Experts have called for an urgent update to the Companies Act 1994, describing the current legislation as outdated and insufficient for the needs of Bangladesh’s evolving business environment.

The call came during a workshop titled "Importance of Board Meeting, AGM, EGM and Compliance of Limited Companies," held on 2 August. The event brought together senior officials, legal experts, and industry leaders to discuss governance and compliance challenges facing limited companies.

In his opening remarks, a key business leader stressed the growing need for institutional transparency, accountability, and strong governance practices. He highlighted that many entrepreneurs struggle with legal complexities due to a lack of practical guidance, often leading to non-compliance and legal risks.

The Registrar of Joint Stock Companies and Firms (RJSC), AKM Nurunnabi Kabir, attending as chief guest, noted that over 275,000 business entities are currently registered with the RJSC. He said most services are already available online, and share transfers are expected to be digitised soon following a security assessment.

He urged company owners to stay fully compliant with legal and regulatory frameworks, recommending that businesses train their staff in relevant laws including the Companies Act, Articles of Association, and securities regulations.

Keynote presentations were delivered by Mohammed Sanaullah, CEO of a corporate consultancy, and Md Selim Reza, a partner at a chartered accounting firm. They emphasised that strict compliance with the law is essential for all companies—public, private, or proprietorship—especially as Bangladesh’s economy grows and faces rising global competition.

They also stressed that compliance enhances business credibility, discourages malpractice, and is vital for attracting investment.

Both speakers agreed that the Companies Act 1994 no longer aligns with today’s business realities and must be urgently reformed to promote good governance, support economic growth, and meet international standards.

Senior business chamber leaders also attended the event and echoed the need for immediate legal reforms to strengthen the corporate ecosystem in Bangladesh.