Beximco Pharmaceuticals has moved to restructure its board, proposing the removal of Vice-Chairman Salman F Rahman while retaining three existing directors as it seeks to stabilise the company amid the changed political environment.
The pharmaceutical company has recently informed the Bangladesh Securities and Exchange Commission (BSEC) that Salman F Rahman has agreed to step down to avoid any adverse impact on its business and shareholders following the political changes in the country.
Salman F Rahman, former Prime Minister Sheikh Hasina’s private industry and investment adviser, was arrested after the political transition in August 2024 and remains in jail.
The proposed board will retain Beximco Pharmaceuticals Chairman Ahmed Sohail F Rahman, Managing Director Iqbal Ahmed and Director Osman Kaiser Chowdhury from the existing board.
The current board also includes Salman F Rahman as vice-chairman, Abu Bakar Siddiqur Rahman and Reem H Shamsuddoha as directors, and Mamtaz Uddin Ahmed and Md Ibraheem Hosein Khan as independent directors.
Under the restructuring plan, the new board will comprise sponsor directors, independent directors, a nominee director from IFIC Bank and the managing director as an ex-officio director.
The proposed board also includes Ajmal Kabir and Qumrun Nahar Ahmed as directors, while Shah Monzurul Haque has been proposed as an independent director.
The list of independent directors may be longer later.
Regulatory sources said BSEC is set to proceed with the restructuring proposal as Salman F Rahman and his family members own less than 15 per cent of the company’s shares and his connection has been hurting the interests of majority shareholders.
Beximco Pharmaceuticals, one of Bangladesh’s top-tier pharmaceutical companies, is listed on both local bourses as well as the Alternative Investment Market of the London Stock Exchange.
The company told BSEC that the proposed appointments would also require due diligence under London Stock Exchange rules, a process that may take four to six weeks.
Foreign investors have agreed with the restructuring plan, according to the company.
BSEC had proposed including representatives of foreign shareholders on the board, but the investors did not agree.
Market participants said Salman F Rahman’s departure from the board could help restore investor confidence.
Beximco Pharma shares closed 1.42 per cent higher at Tk149.7 on the Dhaka Stock Exchange on Tuesday.
