Salman F Rahman, the vice chairman of Beximco Pharmaceuticals and former private industry and investment adviser to former prime minister Sheikh Hasina, has been excluded from the company's board of directors.

The Bangladesh Securities and Exchange Commission (BSEC), the capital market regulator, approved the newly reconstituted board of directors, excluding him.

The reconstituted board was approved following an application from Beximco Pharmaceuticals at a commission meeting of the Bangladesh Securities and Exchange Commission (BSEC) on Tuesday, September 29.

According to Bangladesh Securities and Exchange Commission (BSEC) sources, the restructured board consists of nine members. Among them, three are sponsor directors: Ahmed Sohel Fasihur Rahman (ASF Rahman), Osman Kaiser Chowdhury, and Iqbal Ahmed.

Additionally, four independent directors have been appointed to the board. The board has also been expanded to include a representative from IFIC Bank as a shareholder, alongside the company's managing director serving on an ex-officio basis.

This marks the first time in the company's history that the managing director has been appointed as a member of the board of directors.

With independent directors forming the majority on the reconstituted board, their role in management has expanded compared to before.

Earlier, in a letter to the BSEC, Beximco Pharmaceuticals stated that Salman F Rahman had agreed to step down from the board of directors.

The initiative to restructure the board by excluding him was taken based on his consent.

Following the company's application, the BSEC also granted consent for the board's restructuring.

After completing subsequent formal procedures, the regulatory authority approved the new board on Tuesday.

According to relevant sources, Salman F Rahman agreed to step aside in light of the pressure on the business operations and reputation of various entities within the Beximco Group, following the changed political situation in the country.

Sources noted that preventing damage to the company’s business and shareholders as a result of his involvement was also a key factor in reaching this decision.

Salman F Rahman was arrested in August 2024 following a change in the political landscape. He is currently being held in prison.

Beximco Pharmaceuticals is listed on the country's stock market, and its shares are also traded on the Alternative Investment Market (AIM) of the London Stock Exchange.

Relevant sources indicated that foreign investors in the company also agreed with the plan to remove Salman F Rahman from the board in the interest of business operations.

Capital market analysts believe that Beximco Pharmaceuticals is an established company in the country's pharmaceutical sector.

Salman F Rahman’s involvement in the company’s ownership and management has recently led to mounting pressures on its business and reputation.

Forming a new board without him brings structural changes to the company's governance.

Observers believe that the majority of independent directors and the inclusion of the Managing Director on the board will create a new management framework for the company.

Despite various political and business pressures, Beximco Pharmaceuticals has maintained its profitability.

According to the company's latest financial report, it earned a profit of Tk222 crore in the January–March quarter of this year.

Prior to this, the company reported a profit of Tk694 crore in FY25.

Capital market observers are now closely monitoring the changes that will take place in the company's management and operational activities after the new board is formed, and assessing how these developments affect the confidence of both local and foreign investors.

Why it matters

The overhaul signals a push to insulate a key Bangladeshi pharmaceutical exporter from political fallout and restore foreign investor confidence.