Dhaka, Bangladesh (BBN)- Dhaka Stock Exchange (DSE) will hold an Extraordinary General Meeting (EGM) on October 29 next as part of completing the demutualization process, officials said.
The decision of holding the EGM was finalised at a board meeting held on Wednesday, they added.
“At the meeting the company’s authorized capital was also finalized along with the discussion on the demutualization scheme approved by the regulator,” a DSE senior official said.
Under the ‘The Exchanges Demutualisation Act 2013’, the bourses will have to hold its EGM within 30 days of getting the approved scheme of the demutualization.
At the EGM the exchange will have to adopt the approved schemes by modifying their Memorandum and Articles of Association.
The bourses will also reshuffle their existing boards to match the board size in the approved scheme.
The premier bourse got the approved scheme from the securities regulator on Tuesday.
The Bangladesh Securities and Exchange Commission (BSEC) approved the demutualization scheme of the bourses on September 26 including a 13-member board structure where the independent directors will be majority.
As per the asset re-valuation conducted ahead of demutualization, the value of the DSE stood at BDT 42 billion.
The company’s authorized and paid-up capitals are BDT 25 billion and BDT 18.03 billion respectively.
Earlier on Tuesday, the Securities regulator sent demutualization schemes to both bourses – Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) and the bourses have to publish it in their websites and national dailies within seven days, official said.
On September 26, the BSEC gave its final approval to the demutualisation schemes setting a provision of appointing majority number of independent directors in 13-member board structure in a groundbreaking move to bring structural changes in the exchanges’ operations.
The move comes after a long waited demand and process of ensuring accountability and transparency in the country’s stock markets through the separation of management from the ownership.
The bourses are now non-profit cooperative organisations, owned by the exchange members who are usually stockbrokers. When the bourses will become public limited companies, the shareholders will get dividend at the end of a year.
BBN/SSR/AD-03Oct13-10:13 am (BST)
