Change In Ownership
RJSC to explain how it happens without regulators approval
The Registrar of Joint Stock Companies (RJSC) and Firms has allowed shareholder of a telecom firm which operates with a license from Bangladesh Telecommunication Regulatory Commission (BTRC) to make alleged changes in its ownership without checking the regulator's approval.
The BTRC issue has created legal complexity regarding the ownership of the said firm and BTRC has recently issued a notice on the Registrar of the Joint Stock Cos to explain the mater, a senior BTRC official told Daily Observer on Saturday.
A shareholder of the company managed to change the ownership of the entity without taking the BTRC's prior approval, leaving the commission in discomfort, the official said.
Besides, prior to awarding license to a particular entity, the commission conducts a scrutiny to check whether or not the owners, directors or shareholders have any criminal records, the official said, adding that the commission also went through the entity's business history before granting the license.
Change in ownership of a BTRC registered firm without its consent may make an individual ineligible for license and consequently it may take control over any telecom service, the official said.
According to Bangladesh Telecommunication Regulatory rules the commission's approval is mandatory for changing ownership of a company or firm, licensed by the commission, which results in a change in the control of the business for which the entity was licensed.
For change in the capital structure, issuance and disbursement of new shares, a change in the board of directors, and inclusion of new shareholders are subject to prior approval from the government and its regulatory body.
The commission has already issued a letter to the RJSC requesting it to check whether or not the BTRC licensee has the authorization to change ownership.
The commission officials fear that there may have been other cases where BTRC licensees had changed ownership and other information altered without taking the BTRC's approval in violation of the BRTC act along flouting relevant conditions of the licensing guidelines.
The commission came up with the clarification for the BTRC licensees in its notice issued on October 8 in which the regulator instructed all of its licensees to comply with due licensing conditions if they intended to make any changes of shareholders or ownership.
On failure it said the commission would take legal measures against the companies or firms under existing law and rules and the relevant licensing conditions, the BTRC notice said.