The internal disputes among the sponsor family directors of Alhaj Textile Mills have been resolved, with all parties reaching an agreement, according to a disclosure issued yesterday.
The company also restructured its board, including a shareholder who owns more than 5% of the company’s shares as a director, while the regulator-appointed independent directors were withdrawn.
On the stock exchange’s website, the company published a disclosure. After publishing the news of resolving disputes among directors and appointing new directors to the board, Alhaj Textile Mills’ share price soared by 5.82% to Tk112.80 each.
Its newly appointed board consists of Md Bakhtiar Rahman as chairman (acting), Md Mizanur Rahman as managing director and CEO (acting), and directors Md Harunoor Rashid, Md Abdullah Bokhari, Md Talha, Md Saidul Islam, and Khodeza Khatoon as Md Joynul Abedin Chowdhury.
Amid internal conflict among the directors of the company in June 2023, the Bangladesh Securities and Exchange Commission (BSEC) recast Alhaj Textile’s board, appointing independent directors.
The disputes among the directors have continued for over a year. Now, the owners themselves have resolved the issue.
In February this year, in a letter to the commission signed by Md Bakhtiar Rahman and Muhammad Mizanur Rahman, both shareholder directors, Alhaj Textile said that the disputes regarding the directors have been resolved.
On 17 November, in a letter to the company, the BSEC withdrew independent directors from the board of Al-Haj Textile.
The letter read that considering the overall situation, the sponsor-directors of Alhaj Textile Mills jointly hold 30% of the shares of the company. The shares of the company are trading in the B category. So, the order of the commission appointing independent directors was withdrawn.
Amid the conflicts, the textile firm did not publish its annual financials for the 2022-23 fiscal year and three quarters of the 2023-24 fiscal year.
Lastly, it revealed its third quarter financials during the July to March of FY23. Since then, no financials have been published, according to the Dhaka Stock Exchange.
Lastly, in FY22, it had paid a 3% cash dividend to its shareholders.
