Urgent call for modernization of the antiquated Companies Act of 1994 by industry experts
Modernizing the Companies Act 1994: A Necessity for Bangladesh's Growing Economy
In a recent workshop held at the DCCI auditorium on 2 August, the urgent need for modernizing the Companies Act 1994 was a central theme. The event, attended by key stakeholders, including the Registrar (Additional Secretary) of Joint Stock Companies and Firms (RJSC), AKM Nurunnabi Kabir, highlighted the importance of this reform in reflecting the evolving business environment, technological advancements, and global best practices.
The workshop, titled 'Importance of Board Meeting, AGM, EGM and Compliance of Limited Companies', was a platform for keynote papers presented by Mohammed Sanaullah and Md Selim Reza. The speakers called for reforming the Companies Act 1994 to align with current business realities, emphasizing the need for clarity in compliance requirements for board meetings, annual general meetings (AGMs), and extraordinary general meetings (EGMs).
AKM Nurunnabi Kabir, in his address as chief guest, mentioned that over 2 lakh 75 thousand business entities are currently registered with the RJSC. While most company registration processes are now digitized, the share transfer system still awaits secure online transformation. This underlines ongoing efforts to modernize company administration in line with digital practices.
DCCI Senior Vice President Razeev H Chowdhury and Vice President Md Salem Sulaiman were also present at the event. They underscored the importance of compliance for all types of businesses, as strict adherence to compliance standards is crucial due to Bangladesh's growing economy and increasing global competition. Compliance helps build trust, credibility, and curb malpractice and misuse.
The reforms are expected to positively impact the capital market by ensuring that listed companies maintain compliance with post-listing regulations related to transparency, fiscal reporting, and corporate governance, thereby protecting investor interests and bolstering market confidence.
DCCI President Taskeen Ahmed emphasized the importance of institutional transparency, accountability, and good governance in managing limited companies. He stressed that these principles are central to Bangladesh’s economic progress and industrial development.
In summary, the current status is that the Companies Act 1994 remains in force but widely regarded as insufficient for modern economic demands. The government, encouraged by multiple expert and industry calls since early August 2025, is under pressure to introduce comprehensive updates that will align the legal framework with the digital era and contemporary global standards. The aim of these updates is to support a more transparent, compliant, competitive corporate sector, foster good governance, enhance investor confidence, and underpin the country’s economic growth.
The speakers at the workshop emphasized the necessity of aligning the Companies Act 1994 with current business realities, particularly focusing on clarity in compliance requirements for board meetings, annual general meetings (AGMs), and extraordinary general meetings (EGMs). Compliance is crucial for all types of businesses due to Bangladesh’s growing economy and increasing global competition, as it helps build trust, credibility, and curb malpractice and misuse.
