‘Govt prioritising Company Act reform to create business-friendly climate’

The government is giving top priority to recommendations from private sector leaders and trade bodies as it works to modernize and simplify the existing Company Act. The initiative seeks to amend the outdated Company Act of 1994 and align it with modern international standards to create a more business-friendly environment.

Commerce Minister Khandaker Abdul Muktadir MP made the remarks as the chief guest at an exchange-of-views meeting on the draft amendment to the Company Act, 1994. The event was organized by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at its Motijheel headquarters in the capital on Monday.

FBCCI Administrator Fazlul Hoque presided over the meeting. Speakers included ICC Bangladesh President Mahbubur Rahman, BGMEA President Mahmud Hasan Khan, BKMEA President Mohammad Hatem, DCCI President Taskeen Ahmed, BTMA President Showkat Aziz Russell, Apex Footwear Managing Director Syed Nasim Manzur, and BARVIDA President Abdul Haque. Former MCCI President Barrister Nihad Kabir presented the keynote paper.

Addressing the business leaders, the commerce minister said the private sector is the main driving force of the national economy. He noted that various sections and sub-sections of the law are being streamlined, with successful international models such as Singapore being used as benchmarks. The minister said the government is favourably considering the business community’s request for an additional 30 to 60 days to submit feedback so that a thorough review and international comparison can be made. Despite current fiscal, revenue and foreign reserve constraints, he added, the government will finalise a three-year action plan �" including strategies for LDC graduation �" in close partnership with the private sector.

ICC Bangladesh President Mahbubur Rahman called for comprehensive modernisation of trade, income tax and company laws. He highlighted the need to resolve legal conflicts between different statutes (such as the definition of “family” in banking and company laws), simplify auditing and compliance rules in view of the shortage of Chartered Accountants and Company Secretaries relative to nearly 300,000 registered companies, shift from individual-based consultations to structured institutional dialogues, and streamline income tax return submission and online filing systems.
The draft amendment was published on the official website on 19 August for public and stakeholder feedback.