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Islami Bank shares held by S Alam Group entities frozen by High Court
The High Court of Bangladesh has ordered the freezing of 81.92 percent of Islami Bank's shares held by 24 entities associated with the S Alam Group. The three-month freeze follows allegations that these entities have exercised unlawful, monopolistic control over the bank.
The ruling comes after a writ petition was filed by the Islamic Economic Research Bureau (IERB). The petition argues that the current shareholding structure violates the Bank Company Act 1991, which stipulates that no single family or group may hold more than 10 percent of a bank's shares.
In addition to the freezing order, the court has issued a rule to examine why the inaction of Bangladesh Bank regarding this concentrated ownership should not be declared illegal. The court also requested clarification on why necessary steps are not being taken to confiscate surplus shares under section 14A(3) of the Bank Company Act.
Entities
Bangladesh Bank · High Court of Bangladesh · Islami Bank · Islami Bank Bangladesh PLC · Islamic Economic Research Bureau · S Alam Group
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Under the Bank Company Act, no single family or group is permitted to hold more than 10 percent of a bank's shares. dailysylhet.com
- [○ 1 SOURCE] The High Court ordered the freezing of 81.92 percent of Islami Bank shares held by 24 entities associated with S Alam Group for three months. dailysylhet.com
- [○ 1 SOURCE] The court issued a rule to investigate why surplus shares should not be confiscated under section 14A(3) of the Bank Company Act. dailysylhet.com
- [○ 1 SOURCE] The IERB filed a writ petition alleging that 24 entities linked to S Alam Group exert unlawful control over 81.92 percent of Islami Bank's shares. dailysylhet.com
- [○ 1 SOURCE] The court issued a rule to determine why Bangladesh Bank's inaction regarding the dominance of these 24 entities should not be declared illegal. dailysylhet.com