The government will formulate a modern Companies Act incorporating the views and recommendations of business leaders and entrepreneurs, taking into account emerging technologies such as artificial intelligence (AI), automation and online information exchange, Commerce and Industries Minister Khandakar Abdul Muktadir said.
He made the remarks while addressing a view-exchange meeting on the draft third amendment to the Companies Act 1994, held at the FBCCI in Motijheel on Monday.
Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) administrator Md. Fazlul Haque presided over the meeting.
The minister said the Companies Act was enacted in 1994 and amended twice since then. Given the changing global business environment, he said, the law needs to be updated to reflect current realities.
He suggested examining the experiences of countries where regulatory reforms have helped simplify business rules and procedures.
Referring to Bangladesh's preparations for graduation from the least developed country (LDC) category, Mr Muktadir said the government would have to tackle various economic challenges over the next three years.
He said reforming the Companies Act was only one part of a broader strategic plan to address those challenges.
The consultation focused on the proposed Companies Act, 1994 (Third Amendment), 2026, with stakeholders discussing its objectives, proposed changes and implications for businesses.
International Chamber of Commerce, Bangladesh (ICC Bangladesh) President and former FBCCI President Mahbubur Rahman welcomed the government's consultation with the private sector before finalising the proposed amendments.
He said policies had previously been adopted without adequate consultation with businesses.
"Consultation with the private sector should be institutional, not individual," he said, urging the government to engage business organisations regularly in the policymaking process.
Mr Mahbubur said there should be a structured platform through which businesses could raise their concerns and discuss possible solutions with policymakers and relevant authorities.
He highlighted several concerns relating to corporate compliance and company law, including requirements for board meetings, directors' signatures, audit reports and tax returns.
He also pointed out that the term "officer" is defined in several sector-specific laws, including those governing the securities market, banking, insurance and taxation, and called for examining whether the Companies Act provides a clear definition.
The discussion also covered the roles and legal requirements of company secretaries and board secretaries, with participants calling for greater clarity under existing corporate laws.
Mr Mahbubur stressed that consultation with businesses should not depend on individual invitations from government authorities.
"It should be institutional.
The institution should be there, and consultation should take place more often so that the government has greater knowledge of the problems and practices of the private sector," he said.
He also called for greater opportunities for the private sector and its involvement in developing laws and practices affecting businesses.
The ICC Bangladesh president said both domestic and foreign businesses should be considered when formulating policies. Referring to government policies on ICT and other business-related areas, he said the private sector was ready to work as a partner with the government.
"We will be your partner. Please do consult us at any time whenever you think that any kind of advice is required on government policy issues," he said.
Apex Footwear Ltd Managing Director Syed Nasim Manzur stressed the need to ensure data security in the online submission of business information to the Registrar of Joint Stock Companies and Firms (RJSC).
He also called for enhancing the professionalism and capacity of RJSC officials.
Mr Manzur, who is also president of the Footwear, Leathergoods and Accessories Exporters Association, cautioned that treating inter-company loans as taxable income could discourage entrepreneurship.
He said businesses often relied on loans from sister or related companies when bank financing was unavailable or costly, with such loans later repaid with interest.
"Treating that money as income and taxing it would discourage entrepreneurship," he said.
Mr Manzur also urged the government to set a firm deadline for finalising the rules governing business organisations, saying uncertainty over the rules was hampering preparations for upcoming elections.
He said the Companies Act, as the principal law governing business operations, should prevail over other overlapping laws.
Mohammad Mostafa Jamal Haider, director general (joint secretary) of the Trade Organisations Wing of the commerce ministry presented the keynote paper on the proposed amendments.
Barrister Nihad Kabir, former president of the Metropolitan Chamber of Commerce and Industry (MCCI), presented recommendations on behalf of the private sector.
Five strategic objectives have been identified for modernising the law and bringing it in line with global standards, according to the meeting.
These include simplifying business procedures, creating greater opportunities for small and medium-sized enterprises (SMEs), ensuring effective use of information technology, providing a legal framework for corporate social responsibility (CSR), and strengthening corporate governance.
In the open discussion, RJSC Additional Registrar Md Nur-e-Alam stressed the need to strengthen the organisation's intellectual capacity alongside infrastructure development.
Amending the law alone would not be sufficient to improve the regulatory framework, he said.
In response, Commerce Minister Khandakar Abdul Muktadir assured stakeholders that a reasonable timeframe would be provided to review the draft and submit feedback.
Business leaders sought an additional 30 days to review the draft and submit sector-specific recommendations.
The event was also attended by Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem, BGMEA President Mahmud Hasan Khan, Bangladesh Chamber of Industries President Anwar-Ul-Alam Chowdhury (Parvez), BTMA President Showkat Aziz Russell, DCCI President Taskeen Ahmed, Transcom Group CEO Simeen Rahman, and BARVIDA President Abdul Haque.
