Salman F Rahman plans to quit four Beximco boards

Salman F Rahman, vice chairman of Beximco Pharmaceuticals PLC, plans to resign from the company’s board, citing the difficulties faced by its employees amid the country’s political environment since the interim government took office.

Salman, a former private industry and investment adviser to former prime minister Sheikh Hasina, has been in custody since his arrest following the political changeover in August 2024.

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Beximco Pharma informed the Bangladesh Securities and Exchange Commission (BSEC) of his decision in a letter dated September 3.

The company also told the BSEC that Salman plans to resign from the boards of Bangladesh Export Import Company PLC, Shinepukur Ceramics PLC and Beximco Securities Limited for the same reasons.

Beximco Pharma said the resignations would also help reconstitute the boards of the companies.

In the letter, the company said Salman plans to step down so that it can operate “without any hurdle and interference” in the best interests of the company, its shareholders and employees.

Salman co-founded Beximco Pharmaceuticals in 1976. He has served on the company’s board for many years and is currently its vice chairman.

Following his resignation, the company has proposed reconstituting its board with four directors nominated by foreign shareholders, one director from local financial institution IFIC Bank PLC, three directors representing the sponsors, two independent directors in line with the Corporate Governance Code, and a newly appointed managing director.

The proposed appointments will be subject to applicable regulatory and other requirements, the company said.

Beximco Pharma, which is listed on the Alternative Investment Market (AIM) of the London Stock Exchange, also said it must comply with the AIM Rules governing the appointment of directors.

The standard due diligence process usually takes four to six weeks, while the board reconstitution is expected to take six to eight weeks, it added.

After the political changeover in 2024, the BSEC appointed nine independent directors to Beximco Pharma following a directive from the finance ministry. The company challenged the appointments in court.

Since then, its board has not met to approve the company’s accounts or publish its financial results.

As a result, the company faced the risk of being delisted from the London Stock Exchange in June last year. The issue was later resolved after the BSEC allowed the company to hold a board meeting and approve its overdue accounts.

Md Abul Kalam, spokesperson for the BSEC, told The Daily Star that the regulator had received the letter.

He said the company can reconstitute its board in line with its memorandum and articles of association and the Companies Act to ensure proper management.

“As a regulator, we will check whether the company complies with the Corporate Governance Code, including the requirement to have at least one-fifth of its directors as independent directors,” he added.

Yesterday, shares of Beximco Pharmaceuticals rose 1.42 percent to Tk 149.70 on the Dhaka Stock Exchange.

The BSEC has permanently barred Salman from the stock market for misleading investors through a deceptively named bond.