The Bangladesh Securities and Exchange Commission (BSEC) has approved the reconstitution of Beximco Pharmaceuticals’ board, excluding the company’s vice-chairman Salman F Rahman.
The new nine-member board will comprise three representatives of the Beximco Group, one director nominated by IFIC Bank PLC, four independent directors, including one woman, and the company’s managing director.
The decision was taken at a BSEC commission meeting today (29 September).
Under the arrangement, Beximco Pharmaceuticals will withdraw a pending lawsuit challenging the regulator’s earlier decision to appoint independent directors. The BSEC will then withdraw two of its previous orders related to the dispute, according to the regulator.
The Beximco Group representatives on the new board are ASF Rahman, chairman and founder of the group, Osman Kaiser Chowdhury and Iqbal Ahmed. Osman Kaiser is currently a director of Beximco Pharma, while Iqbal Ahmed is its managing director, according to the company’s website.
Salman F Rahman, a co-founder and vice-chairman of Beximco Group, has been in custody since his arrest following the political changeover in August 2024. He previously served as private industry and investment adviser to former prime minister Sheikh Hasina.
Following the change of government, the BSEC appointed independent directors to Beximco’s three listed companies – Beximco Ltd, Beximco Pharmaceuticals and Shinepukur Ceramics – in early 2025. The companies subsequently challenged the appointments in court.
In September, Salman agreed to step down from the boards of the group’s listed companies, paving the way for their restructuring and helping resolve a prolonged regulatory and legal deadlock. The three companies separately informed the BSEC of his decision.
Beximco Pharmaceuticals had proposed a new board without Salman as part of efforts to resume normal board operations. The company, which is also listed on the Alternative Investment Market (AIM) of the London Stock Exchange, said appointments would remain subject to applicable AIM rules and due diligence requirements.
Beximco’s massive debt burden
The board restructuring comes as the conglomerate faces severe financial and operational difficulties.
According to a Bangladesh Bank report submitted to the High Court, Beximco Group had outstanding loans and liabilities of Tk50,098 crore as of 30 November 2024. Of this, Tk25,524 crore had been classified as defaulted.
Investigations by the Bangladesh Financial Intelligence Unit also found alleged irregularities in the group’s borrowing, including loans obtained through entities described as non-existent or paper companies. Some funds were allegedly channelled into capital-market share manipulation.
Following the political changeover and Salman’s arrest, the group’s loans and assets came under scrutiny from the courts and Bangladesh Bank, with options including receivership and asset sales considered for loan recovery.
The financial difficulties have also disrupted operations. Beximco Ltd has remained out of production amid raw-material shortages and loan defaults, while Shinepukur Ceramics has been operating partially because of difficulties importing raw materials.
Beximco Pharmaceuticals, however, has continued its operations.
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