The Appellate Division of the Supreme Court has directed the authorities concerned to hold an Extraordinary General Meeting (EGM) to appoint Managing Director (MD) and Deputy Managing Director (DMD) for Envoy Textiles Limited.
On November 12, 2023, Sunday, a five-member bench of the Appellate Division headed by Chief Justice Obaidul Hassan passed the order after hearing an appeal petition filed by Abdus Salam Murshedy and others against a High Court judgment that allowed Tanvir Ahmed, one of the directors of the company, to continue as Managing Director until the AGM.
The legal saga had begun in June 2022 when Abdus Salam Murshedy contested a potential cessation of his position as Managing Director by the board committee.
Abdus Salam Murshedy is set to relinquish his role as the Managing Director of Envoy Textiles Limited.
The High Court Division’s judgment dated March 9, 2023 mentions his unscrupulousness and his defiance of law.
According to the High Court Division’s judgment, Abdus Salam Murshedy has lost his ability to be the Managing Director of Envoy Textiles Ltd. as he committed an offence under section 156 (1)(14) of the Customs Act, 1967 by giving a false declaration to the Customs authority in violation of section 32 of the Customs Act.
He had deceitfully declared that chillers were being imported as the capital machineries of the company, when actually the said chillers were imported and then installed for his personal commercial building situated in Uttara, Dhaka.
It was observed in the judgment that Customs papers, letters of credit, bills of entries and commercial invoices clearly indicated that Abdus Salam Murshedy had imported different equipment and machineries for his personal use, and in this way, he evaded tax and thereby committed an offense under section 156 (1) (14) of the Customs Act. And for this reason, Abdus Salam Murshedy could be held ineligible to remain in the board even as a mere Director.
Secondly, one cannot be the Managing Director of more than one public company without the government’s approval, as per section 109 of the Companies Act.
Abdus Salam Murshedy was serving as the Managing Director of Envoy Textile Ltd. even though he had been the Managing Director of several other companies at the time. Thus, he violated the provisions of section 109 of the Companies Act, and so he was declared disqualified to be the Managing Director of the company.