A STUDY ON THE BOARD STRUCTURE AND COMPOSITION IN THE TELECOMMUNICATION INDUSTRY OF BANGLADESH

Yesmin Sultana, American International University, Bangladesh
Jubairul Islam Shaown, BRAC University, Dhaka, Bangladesh

Published in

INTERNATIONAL JOURNAL OF BUSINESS STRATEGY
Volume 18, Issue 2, p59-66, October 2018

ABSTRACT

Bangladesh, a country with a robust GDP growth rate of 7.65%, is facilitating the expansion of a huge number of companies across multiple industries. This growth scenario is evident in the telecom industry as well. In order to find out whether this growth is sustainable, it is imperative to shed light on the corporate governance of these industry players. This paper aims at working with the corporate governance, specifically board governance, of the operational telecommunication companies of the country. This researcher seeks to examine the board structures and compositions of the companies in the telecommunication industry of Bangladesh, and find out the different measures in place to ensure board effectiveness. For this research, all the 4 operational companies in the telecommunication sector are considered. The primary data is collected through semi-structured questionnaires; the respondents are respective Company Secretaries. According to the findings and analysis, the companies have proper governance mechanisms in place for board structure and board composition. As there is a regulatory body, Bangladesh Telecommunication Regulatory Commission (BTRC), the level of governance is quite laudable for these companies. Majority of the company’s Chairmen do not have any shareholding. Shareholdings by the directors are less than 10% for majority of these companies. For all the companies, there are set standards to ensure proper function of the boards. Performance is measured regularly against set objectives. Majority of the boards have disclosure policy regarding personal interest in the company. However, regarding selection, most of the companies do not have any upper limit on the number of times a person can be elected as Chairman. The same rule applies for other board members as well. This research findings will help the policy makers to further find out the issues that positively contribute to the effectiveness of the boards. Similar types of research could be conducted to find out the board structures, board’s level of compliance and relation to company performance in other industries.

Keywords

Board Composition, Board Governance, Corporate Governance, Effectiveness, Independent Director, Ownership, Quorum, Tenor


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