Written by The Banking Post
The Bangladesh Securities and Exchange Commission (BSEC) has extended the deadline for listed companies to appoint at least one female independent director on their boards, granting an additional eight months to comply with the requirement under its corporate governance code.
Originally, listed firms were required to comply with the rule by April 29, 2025. However, after many companies failed to meet the deadline, the BSEC granted an extension on June 29, moving the deadline to December 2025, effectively offering five more months for compliance.
The corporate governance code stipulates that at least one-fifth of the total number of directors on a company’s board must be independent, with a minimum of two independent directors. The revised rule also mandates that at least one of the independent directors must be a woman.
An official from the Bangladesh Association of Publicly Listed Companies (BAPLC) said that the organisation had earlier petitioned the commission for reconsideration, citing difficulties in finding suitably qualified women to serve as independent directors.
“There is also a regulatory cap that limits one female director to serve on the boards of no more than five listed companies, which makes the search even more difficult,” the official noted.
In a letter to the BSEC chairman and its task force, the BAPLC requested that the requirement for a female independent director be waived, while retaining the earlier requirement of having one-fifth of the board as independent directors.
The association argued that many listed companies currently operate with only one independent director and have maintained good governance and profitability. “Mandating the appointment of an additional independent director, particularly a female director, would increase costs and create operational difficulties, especially for smaller firms,” the letter stated.
It also pointed out the shortage of qualified and competent female professionals available for board roles, saying that while the provision aims to promote gender diversity and strengthen governance, its implementation may backfire if suitable candidates are not readily available.
The original directive was published in a gazette notification on April 4, 2024, with a one-year compliance window.
