Home Finance High Court Recasts Envoy Textiles’ Board For Row Among Directors

High Court Recasts Envoy Textiles’ Board For Row Among Directors

High Court Recasts Envoy Textiles' Board For Row Among Directors

The Board of Directors of export-oriented Envoy Textiles has been temporarily reconstituted til the disposal of a case pointed by Abdus Salam Murshedy, former Managing Director and one of the company’s founders, along with other Directors, as per a High Court order issued in August 2022. After becoming a public limited company in 2012 and starting commercial operations in 2008, the thread, fabric, and garment maker has a paid-up capital of Tk. 167 crore and also, a reserve of Tk 354 crore. The article is about High Court Recasts Envoy Textiles’ Board For Row Among Directors.

It provided a 5% cash dividend in both 2021 and 2020. Its stocks dropped 1.32% to Tk. 45. The case was filed under the Companies Act, 1994, against the organization and other Directors, challenging some amendments to an “Article of Association” of the company.

Directors called Nomination and Remuneration Committee, shortly called NRC, meeting to alter its Managing Director Mr. Murshedy when he filed a case to stop the process, said a person who is familiar with the issue but not authorized to talk to the media. As the group has over 51% shareholding, he said they have the right to change Murshedy. “We want the person in the position who can run the company,” he added.

In 1984, Kutubuddin Ahmed, with Abdus Salam Murshedy, then a famous footballer of Mohammedan Sporting Club, started his garment business, known as Envoy Group. From July 2021 to March 2022, its sales figure hit 889 crores, logging a profit of Tk. 35 crore. The company’s earnings per share in these nine months was Tk. 2.12.

One of its factories, Envoy Denim, acquired the Leadership in Energy and Environmental Design’s platinum certification, the first Bangladeshi exporter to get recognition from the US-based Green Building Council in the denim category. According to its website, the first denim facility in Bangladesh to use rope-dyed technology, Envoy has a production capacity of 4.5 million yards each month. In addition, being a backward integrated facility, Envoy has its spinning facility capable of producing 62 tonnes of yarn daily.

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