The Supreme Court rescued the People’s Leasing and Financial Services Ltd (PLFSL) as it was a 10-member board to manage the troubled non-bank financial institution, thus saving it from possible liquidation.
On June 28, the court of Justice Muhammad Bourd Alam Sarkar announced that it would issue an order for the revival of PLFSL instead of liquidating it, as its 201 depositors collectively applied for the restructuring of the company.
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In the full text of the order issued Monday, the court also issued several instructions to the board of directors, borrowers and the Anti-Corruption Commission (ACC) for the smooth running of the company.
PLFSL, which became operational in 1996, has faced a wide range of financial fraud since 2004, forcing the central bank to appoint an observer in 2015.
In addition, the central bank fired five NBFI executives in 2015 for their alleged involvement in the embezzlement of Tk 358 million.
Nevertheless, the central bank failed to restore corporate governance in the PLFSL. Meanwhile, NBFI’s financial health continued to deteriorate.
The liquidation process began after PLFSL’s board informed BB in April 2019 of its inability to repay depositors’ money despite the expiration of deposits.
The HC has now appointed Kamal-Ul-Alam, a senior lawyer at the Supreme Court, as chairman of PLFSL and Mohammad Jalaluddin, a former managing director of Ansar VDP Unnayan Bank, as managing director.
The other eight board directors are Anwarul Islam Sikder, a former government secretary. Hassan Sintad Ferdous, retired senior regional and session judge. Abdul Halim Chowdhury, former CEO of Pubali Bank · Brigadier General (retired) Kazi Taufiqul Islam · Noor-E-Khoda Abdul Mobin, chartered accountant. Mowla Mohammad, also chartered accountant. Nashid Kamal, representative of the depositors; and Nurul Kabir, president of the finance department of North South University.
HC ordered the CEO to take over all movable and immovable property, cash, shares, bonds, fixed receipts, receivables, equipment, keys, documents, cars and other items of temporary liquidator (now in operation).
The chairman of the ACC has been called in to deal with criminal matters related to PLFSL’s transactions or operations and should extend all co-operation to the board for its smooth running, the order said.
The court ordered all borrowers to contact PLFSL headquarters to reschedule their loans in accordance with the law by making an advance within 30 days.
If they do not start making payments, they will have to appear in court in person to explain their position, the order said.
The HC instructed the chairman of the board to convene, hold and hold the first board meeting at the convenience of all members and interim liquidator Md Asaduzzaman Khan.
With Khan’s help, the president should temporarily appoint a company secretary from among the officers present and ensure that a copy of the audit report prepared by ACNABIN, a chartered accounting firm, is distributed to each director for review and review. examination before the first meeting.
On August 25, 2019, the HC bench appointed ACNABIN to conduct a special audit on all types of PLFSL transactions and activities.
The CEO appoints the necessary workforce as soon as possible, the mandate said.
The MD will consider re-appointing former officers and staff in good standing who had nothing to do with PK Halder, his cohorts and other senior directors, he said.
Khan Mejbahur Rahman’s lawyer told The Daily Star that HC had appointed the board and handed over the orders in accordance with the relevant provisions of the Companies Act 1994.