Murshedy Removed from Envoy Textiles Board Amid Controversy

Abdus Salam Murshedy, a former lawmaker, has been ousted from his position on the board of Envoy Textiles Ltd., the world’s first LEED Platinum-certified denim mill, following a decisive vote by shareholders. During the company’s 29th Annual General Meeting (AGM) held yesterday at the Gulshan Shooting Club, a significant 84.24% of shareholders voted against Murshedy's re-election.

In his place, Dinesh Gope Virwani, representing Cosmopolitan Industries—an affiliate of the Hong Kong-based multinational EPIC Group—was elected as the new director. Shareholders also reaffirmed their confidence in existing directors Rashida Ahmed and SK Bashir Ahmed, who were re-elected.

The meeting was attended by approximately 25 shareholders, where concerns were raised about Murshedy’s continued access to the company’s office and vehicle despite his removal as managing director in June 2022 due to alleged irregularities. Mahbubul Haque Babu, a shareholder, highlighted the issue, questioning the legitimacy of Murshedy’s privileges given his departure from management.

Babu proposed that an Extraordinary General Meeting (EGM) be convened to address outstanding financial matters concerning Murshedy's 7.47% shareholding in the company. Another shareholder, Gholam Farooq, suggested that the board seek a court order to prevent any actions regarding the sale of Murshedy’s shares until the matter is resolved.

Additionally, shareholders Abdul Motaleb, Nurul Anwar, and Jahangir Alam advocated for legal action against Murshedy to hold him accountable for actions that have allegedly harmed the company’s reputation. Tensions surrounding Murshedy intensified following the ousting of Sheikh Hasina’s Awami League government on August 5, during which student coordinators reportedly assisted in vacating the Envoy office after it was targeted by outsiders claiming it was being misused as Murshedy’s political office.

Despite these developments, Murshedy has retained possession of the company car and has yet to address his outstanding financial obligations to Envoy Textiles.

In a positive turn for the company, Envoy Textiles reported its highest profit since being listed on the stock market in 2012, surpassing Tk60 crore in its FY24 financial report. The earnings per share (EPS) rose significantly to Tk3.58, up from Tk1.95 in the previous fiscal year. In light of this success, the board approved a 20% cash dividend for shareholders, which received ratification during the AGM.

Compounding Murshedy’s legal troubles, he was arrested on October 1 at his residence in Bashundhara by the Rapid Action Battalion (RAB) in connection with a case involving murder and assault in the Fultola area of Khulna in 2022. This incident further complicates his standing and reputation amidst ongoing scrutiny from both shareholders and the public.