A Review on Bangladesh Corporate Governance Practices and its Barriers for the Betterment

Bangladesh capital market is one of the smallest in Asia, and has a lot of problems including a non-developed securities market, investor non-awareness, a lack of research, non-professionalism of the brokerage business and market intermediaries, and a tendency towards unethical gains by insider trading and a lack of transparency. The corporate legal framework in Bangladesh consists of certain Acts and Ordinances, numerous subordinate legislative instruments such as orders, notifications, rules, regulations and circulars, which are issued by the Government, the Bangladesh Bank, the Securities and Exchange Commission of Bangladesh (SECB), the National Board of Revenue (NBR) and other governmental agencies. This study shows the Bangladesh Corporate Governance procedures and its barriers to practise transparent corporate governance in Bangladesh. Along with information about corporate procedures, this research also describes Weak Legal & Regulatory System, Lack of Knowledge & Incompetence, Political Influence & Bureaucracy, Family Business & Agency Problems, Lack of pressure groups, Lack of Compliance Culture, Inadequate and Ineffective Code contents, Limited Transparency & Weak Disclosure Practices and Lack of Foreign or institutional investors, which are few concrete barriers to good corporate governance practices in Bangladesh. Finally, this study recommends some suggestions for good corporate governance practices in Bangladesh.