Bangladesh Export Import Company Limited (Beximco) has withdrawn its nominated director from the Bangladesh Shipping Corporation (BSC) board. This move follows the ousting of the Hasina-led government in August 2024, a shift that has raised questions about the future of Beximco’s influence in state-owned enterprises. This might also affect Bangladesh’s RMG sector since exports and imports are conducted primarily via the sea routes.
Beximco, owned by Salman F Rahman, who previously served as a private sector adviser to former Prime Minister Sheikh Hasina, secured a seat on the BSC board in December 2022 after acquiring over a 5 per cent stake in the corporation. Mostafa Zamanul Bahar was appointed as the nominated director. However, following the political upheaval, the BSC’s latest annual report indicates that Bahar has not attended any board meetings, prompting Beximco to withdraw his nomination.
This withdrawal has implications for both Beximco and the BSC. The corporation, established in 1972 and now managing a fleet of ocean-going vessels, has recently reported its first-ever profit of Taka 250 crore in fiscal year 2024. However, the company’s governance structure, which includes provisions for shareholder representation, may face challenges as it navigates this political transition. According to the Bangladesh Shipping Corporation Act of 2017, the board must maintain a specific composition, allowing for at least two directors from its shareholders.
As the BSC’s board shrinks to eight members due to the withdrawal and the transfer of another high official, the balance of power within the corporation is likely to shift, impacting decision-making processes and future strategies. The annual report emphasises the need for compliance with regulations set forth by the Bangladesh Securities and Exchange Commission (BSEC), and Beximco’s exit raises questions about shareholder dynamics moving forward.
Moreover, the political fallout is not limited to the Shipping Corporation. Following the change in government, individuals connected to Beximco also resigned from the board of Fareast Islami Life Insurance. This trend may suggest a broader reevaluation of corporate governance and stakeholder engagement within sectors traditionally influenced by political affiliations.
Despite these challenges, the BSC has ambitious plans for the future, including the acquisition of two new vessels funded by its growing profits, with a focus on expanding its fleet in response to rising international demand. The corporation is also seeking approval at its upcoming annual general meeting on 22nd December for a two-year extension to utilise Taka 313.70 crore raised through a public offering in 2011, to finance its vessel purchase project.
