New shareholders join Fareast Life’s board of directors

The Bangladesh Securities and Exchange Commission (BSEC) has again rebuilt the board of Fareast Islami Life Insurance Company Ltd.

The regulator on Thursday approved two new shareholder companies Tradenext International Ltd and Jupiter Business Ltd, corporate sponsor Fareast Securities Ltd and individual sponsor Al-Haj Md Helal Uddin Miah to join the board.

Tradenext International owns 9.91% of the shares of Fareast Life and Jupiter Business Ltd owns 9.9% of the shares.

Guaranteeing at least 2% of shares, the directors of the company could appoint more than one director to the board of directors of Fareast Islami Life.

The BSEC also revoked the previous board of 10 independent directors formed last September.

Six newly appointed Independent Directors are – Sheikh Kabir Hossain, Dr Lafifa Jamal, Mozammel Haque, Md Ibraheem Hosein Khan, Sheikh Mamun Khaled and Md Rafiqul Islam.

BSEC said it applied its 2CC power, which allows it to circumvent other laws in the best interests of investors and the market, to approve the board reconstruction.

The company will need to seek retroactive approval of the board reconstruction at the next general meeting of shareholders.

Shares of sponsors and directors of Fareast Life will remain blocked so that they cannot be exchanged without prior announcement and the sponsor-directors will also have to collectively secure a 30% stake in the company, BSEC said in its approval letter. .

Fareast Islami Life, once one of the leading sources of life insurance premiums in the industry, found itself in dire straits following cumulative embezzlement of more than Tk 2,000 crore by some of its former administrators and associates.
He is in a serious fight to settle insurance claims worth at least Tk 1,000 crore amid a funds crisis.

According to sources, Tradenext and Jupiter will appoint three Beximco Group executives as well as Shanta Asset Management Vice Chairman Arif Khan to Fareast Life’s board.

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