BRTC to enter capital market; bill passed

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The bill was placed to update an ordinance promulgated in 1961 keeping a provision to offload the shares of BRTC in the capital market

The ‘Bangladesh Road Transport Corporation Bill, 2020’ has been passed in parliament, paving the way for offloading 49% shares of the corporation in the capital market.

Road Transport and Bridges Minister Obaidul Quader moved the Bill in the House and it was passed by voice vote on Tuesday.

According to the proposed law, the government will own 51 percent shares while 49 percent will be offloaded for the public, reports UNB.

The bill was placed to update an ordinance promulgated in 1961 keeping a provision to offload the shares of BRTC in the capital market.

The authorised capital of the BRTC will be Tk 1,000 crore which will be divided into 100 crore general shares with Tk10 base price. The authorised capital of the corporation under the existing law is only Tk6 crore.

The paid-up capital of the corporation is Tk3 crore in the existing law. Its amount has not been fixed in the proposed law as the BRTC annual general meeting or special general meeting will fix the amount of the paid-up capital but it cannot exceed the amount of the authorised capital.

In the bill, a new provision has been incorporated among the functions of the BRTC that it will render transport services during emergency situation like hartal (strike), blockade, transport strike, emergency condition, national disaster, Biswa Ijtema, freedom fighters’ rally and in the case of emergency need of the state.

The corporation can form one and more companies taking prior permission from the government.