Salman F Rahman to step down from Beximco Pharma board

Salman F Rahman, vice chairman of Beximco Pharmaceuticals and former private industry and investment adviser to former prime minister Sheikh Hasina, is stepping down from the company's board of directors amid the country's changed political situation. The company has recently informed the Bangladesh Securities and Exchange Commission (BSEC) about the matter.

In a letter to the BSEC, Beximco Pharma stated that Salman F Rahman has agreed to step down from the board. Following his resignation, steps have been taken to reconstitute the board.

The proposed new board will include three directors from Beximco Pharma's sponsors, four independent directors, one director nominated by IFIC Bank, and the company's managing director by virtue of office. The letter mentioned that the BSEC has given the green signal regarding the board's reconstitution in this manner.

The letter stated that considering the adverse situation Beximco has faced due to the country's political situation, Salman F Rahman has agreed to resign from the board. He decided to step down so that the company's business and shareholders' interests are not harmed because of him. Salman F Rahman was arrested following the political changeover in August 2024 and is currently in jail.

Beximco Pharma is listed not only on the country's stock market but also on the London Stock Exchange's Alternative Investment Market (AIM). It is learned that the company's foreign investors have also agreed to the plan to exclude Salman F Rahman from the board in the company's interest. BSEC sources said the commission had proposed including representatives of foreign shareholders on the board during the reconstitution. However, the foreign investors did not agree to this. As a result, the process of reconstituting the company's board is now underway by increasing the number of independent directors.

Stock market stakeholders say Beximco Pharma is a good company in the country's pharmaceutical sector. However, due to Salman F Rahman's ownership and influence, the company's reputation and business have been damaged. If he now steps down from the board, it will be a good decision for the company's reputation and business. This will make investors more confident about the company's shares in the stock market.

In its letter to the BSEC, Beximco stated that due to its listing on the London Stock Exchange, Beximco Pharma must also follow the London Stock Exchange's rules in reconstituting the board. Under London Stock Exchange rules, proper vetting of the individual must be completed before appointing anyone as a director. This vetting process may take four to six weeks.

According to Beximco Pharma's latest financial report, the company made a profit of Tk 222 crore at the end of the January-March quarter this year. Previously, in the 2024-25 fiscal year ending June last year, the company had made a profit of Tk 694 crore. Of the company's shares listed on the stock market in 1986, 30 percent are held by sponsors, including Salman F Rahman. The remaining 70 percent of the company's shares are held by institutional, foreign and individual general investors.