Deadline for appointing female independent directors within institutions extended to December by BSEC
In a move aimed at easing compliance pressure, the Bangladesh Securities and Exchange Commission (BSEC) has extended the deadline for listed companies to appoint at least one female independent director to their boards until December 2025 [1][4].
The initial deadline, set by the BSEC, expired around three months ago on June 29, 2025. The extension provides listed companies with around five months to comply with the BSEC's guideline [1].
The extension was granted due to the challenges companies face in finding skilled and qualified women for board positions [2]. The Bangladesh Association of Publicly Listed Companies (BAPLC) had earlier applied to the commission to reconsider the issue, citing the shortage of qualified female directors as another challenge in complying with the provision for gender diversity and improved corporate governance [8].
According to the BAPLC, many listed companies with one independent director are running profitably. The new requirement of having a minimum of two independent directors, including one female, would be cumbersome, cost-intensive, and pose a barrier to their business operations [7].
The corporate governance code issued by the BSEC mandates listed companies to appoint one female independent director in their board [9]. However, the code also stipulates that there is a restriction allowing one female to serve on the boards of a maximum of five listed companies [6].
The extension of the deadline is a recognition of the practical difficulties in identifying and appointing qualified female independent directors within the initially prescribed timeframe. It also aims to encourage better gender diversity on boards while acknowledging ongoing difficulties companies encounter in implementation, emphasizing competence alongside compliance rather than merely fulfilling a quota [3].
The corporate governance code now requires at least one-fifth (1/5) of the total number of directors in a company's board to be independent directors, with any fraction being rounded up [5]. This means that listed companies are required to have at least two independent directors, including one female, if their board has more than four directors.
The gazette notification published on 4 April mandates the decision to be complied with within 1 year from the date of issuance [10]. With the extension, listed companies now have more time to ensure they meet the new requirements and maintain good corporate governance practices.
- In the realm of business and corporate governance in Bangladesh, the extension of the deadline for listed companies to appoint at least one female independent director to their boards until December 2025 offers a respite, acknowledging the challenges in finding skilled women and maintaining health-and-wellness of the businesses.
- The extension of the deadline for the appointment of female independent directors in listed companies is not just about science and finance but also about women's health and wellness, as it seeks to foster better gender diversity and, in turn, contribute to overall corporate health and wellness.
