Bangladesh's Companies Act needs to be updated to strengthen corporate governance, boost economic growth, and align with global best practices, said M. Nurul Alam, acting president of the Institute of Chartered Secretaries of Bangladesh (ICSB).

He made the remarks at a seminar titled "Reforms of the Companies Act" at Sheraton Dhaka on Wednesday, according to a press release.

He highlighted the role of legal reforms in enhancing investor confidence and business efficiency, encouraging active discussions on the topic.

The Companies Act 1994 governs incorporated entities in Bangladesh, covering company formation, operations, dissolution, shareholder relations, disclosures, audits, the Registrar of Joint Stock Companies' roles, and court jurisdiction.

Md Abdur Rahim Khan, secretary (routine charge) of the Ministry of Commerce, expressed optimism about developing a new Companies law that is consistent with Bangladesh's economic aspirations.

Mohammad Sanaullah, former president of ICSB, proposed the inclusion of mandatory independent directors, stronger regulatory enforcement, and the establishment of company law tribunals.

At the discussion, participants suggested integrating the Chartered Secretaries Act 2010, adopting secretarial audits, and enhancing minority shareholder protections in the law.

Md Mizanur Rahman, registrar of RJSC, said that outdated laws hinder business efficiency.

He stressed the need for digital transformation in regulatory processes.