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Investor Presentaiton

ANNUAL 56 REPORT 2018-2019 Report on BSEC's Notification on Corporate Governance Guideline (CGG) For the financial year ended on 30th June 2019 Annexure-C Condition No. Status of compliance with the conditions imposed by the Commission's Notification No. BSEC/CMRRCD/2006-158/207/Admin/80, dated 03 June, 2018 issued under section 2CC of the Securities and Exchange Ordinance, 1969: (Report under Condition No. 9.00) Condition No. 1 BOARD OF DIRECTORS 1(1) Size of the Board of Directors Title Compliance Status (Put √ in the appropriate column) Not Complied Complied Title Compliance Status (Put in the appropriate column) Complied Not Complied Complied Not Complied 1(2)(b)(ix) Who has not been convicted by a court of competent jurisdiction as a defaulter in payment of any loan or any advance to a bank or a Non- Bank Financial Institution (NBFI); 1(2)(b)(x) Who has not been convicted for a criminal offence involving moral turpitude. V Remarks (if any) 1(2)(c) The independent director(s) shall be appointed by the board of directors and approved by the shareholders in the Annual General Meeting (AGM). 1(2)(d) The post of independent director(s) cannot remain vacant for more than 90(ninety) days. 1(2)(e) KPCL Board is composed 1(3) of 19 directors including Managing Director 1(3)(a) ANNUAL REPORT 2018-2019 1(3)(b)(i) 1(3)(b)(iii) 1(3)(b)(iv) 1(3)(b)(v) The tenure of office of an independent director shall be for a period of 3(three) years, which may be extended for 1 (one) term only. Qualification of Independent Director Independent director shall be a knowledgeable individual with integrity who is able to ensure compliance with financial, regulatory and corporate laws and can make meaningful contribution to business. Business Leader who is or was a promoter or director of an unlisted company having minimum paid up capital of Tk. 100.00 million or any listed company or a member of any national or international chamber of commerce or business association; Corporate Leader who is or was a top-level executive not lower than Chief Executive officer or Managing Director or Deputy Managing Director or Chief Financial Officer or Head of Finance or Accounts or Company Secretary or Head of Internal Audit and Compliance or Head of Legal Service or a candidate with equivalent position of an unlisted company having minimum paid up capital of Tk. 100.00 million or of a listed company; Former official of government or statutory or autonomous or regulatory body in the position not below 5th Grade of the national pay scale, who has at least educational background of bachelor's degree in economics or commerce or business or law; University Teacher who has educational background in Economics or Commerce or Business Studies or Law; Professional who is or was an advocate practicing at least in the High Court Division of Bangladesh Supreme Court or a Chartered Accountant or Cost and Management Accountant or Chartered Financial Analyst or Chartered Certified Accountant or Certified Public Accountant or Chartered Management Accountant or Chartered Secretary or equivalent qualification; The independent director(s) shall have at least 10(ten) years of experiences in any field mentioned in clause (b); Duality of Chairperson of the Board of Directors and Managing Director or Chief Executive Officer The positions of the Chairperson of the Board and the Managing 1(3)(c) 1(4) 1(4)(a) Director (MD) and /or Chief Executive Officer (CEO) of the company shall be filled by different individuals; 1(2) 1(2)(a) 1(2)(b)(i) 1(2)(b)(ii) 1(2)(b)(iii) The total number of members of a company's Board of Directors (hereinafter referred to as "Board") shall not to be less than 5 (five) and more than 20 (twenty). Independent Directors At least one fifth (1/5) of the total number of directors in the company's board shall be independent directors; any fraction shall be considered to the next integer or whole number for calculating number of independent director(s); Who either does not hold any share in the company or holds less than one percent (1%) shares of the total paid-up shares of the company; Who is not a sponsor of the company and is not connected with the company's any sponsor or director or nominated director or shareholder of the company or any of its associates, sister concerns, subsidiaries and parents or holding entities who holds one percent (1%) or more shares of the total paid-up shares of the company on the basis of family relationship and his or her family members also shall not hold above mentioned shares in the company: Who has not been an executive of the company in immediately preceding 2(two) financial years; Who does not have any other relationship, whether pecuniary 1(2)(b)(iv) or otherwise, with the company or its subsidiary or associated companies; 1(2)(b)(v) 1(2)(b)(vi) 1(2)(b)(viii) Who is not a member or TREC (Trading Right Entitlement Certificate) holder, director, or officer of any stock exchange; Who is not a shareholder, director excepting independent director or officer of any member or TREC holder of stock exchange or an intermediary of the capital market; Who is not an independent director in more than 5 (five) listed companies; 4 out of 19 directors are appointed as independent Director Does not hold any share 1(3)(b)(ii) Remarks (if any) 57
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