FE Report

A good number of listed companies have now shifted their venues of annual general meetings (AGMs) to safer places, adjacent to the Dhaka Cantonment areas to avert possible chaos created by a section of unruly shareholders.

Listed companies have also tightened the security measures in the AGMs in the backdrop of growing pandemonium.

“At least 12 listed companies have selected Army Golf Club as their ensuing AGM venue in testimony to the companies’ growing insecurity created from a section of unruly shareholders,” said a stock market insider.

Trust Auditorium of Dhaka Cantonment and Army Golf Club of Airport Road are now the most secured venues to hold AGMs by the listed companies, according to stock market insiders.

The managements of the listed companies were compelled to shift their usual AGM venues from the hotels and clubs located inside the Dhaka city following the unruly activities of a section of shareholders of listed companies in recent months.

Pubali Bank Ltd was forced to postpone its 28th AGM on March 31 last at city’s Officer’s Club (Bailey Road) when a section of shareholders became unruly demanding gifts from the company management.

“We failed to bring discipline in the AGM as a section of shareholders became furious demanding gifts from our management though the securities law does not allow any gifts for shareholders in the AGMs, a company source said.

Later the Pubali Bank shifted its AGM venue to Shafipur of Gazipur and held the AGM there on April 24.

Insiders of some listed companies told the FE that a small group of shareholders demand extortions from the companies ahead of their AGMs.

“It has become a culture from the said group to receive handsome amount of money from the managements of the listed companies every year ahead of the AGMs, but it cannot be tolerated,” a top official of a private commercial bank told this correspondent.

He said the bank took tough security measures with the help of RAB and other law enforcing agencies ahead of its recently held AGM.