Business and Finance Law in Bangladesh

Unraveling the Intricacies of Business and Finance Law in Bangladesh

The domain of business and finance law in Bangladesh is as intricate as it is multifaceted, and Law Firm in Bangladesh (Law in BD) stands as a testament to the expertise and prowess in this arena. This article delves into the nuances of business and finance law in Bangladesh, exploring the notable works and the steps involved in Artha Rin (Money Loan) Court Suits. Additionally, we’ll investigate the complexities of capital and profit repatriation for foreign investors.

LAW FIRM IN BANGLADESH: Your Banking & Finance Legal Partner

LAW FIRM IN BANGLADESH, headquartered in Dhaka, is a formidable legal institution with experienced lawyers dedicated to handling Banking & Financial matters. From advisory services to contract vetting and valuation, this law firm offers a comprehensive solution for banking and finance clients. What sets them apart is their track record of successfully defending Artha Rin (Money Loan) & Money Suits on behalf of their clients.

In 2019, the firm accomplished contracts with an impressive overall transaction value exceeding 500 million USD. Their client portfolio includes industry giants like The Westin Dhaka, Borak Real Estate, Bangladesh Association of International Recruiting Agencies, CBI Hong Kong, Hyatt, Hansa Management, Unique Group, Honeycom IT, and others. Beyond these renowned clients, Law in BD– LAW FIRM IN BANGLADESH takes pride in its litigation department, which skillfully handles private litigations for high net-worth individuals in sensitive and personal matters.

Recent Notable Works

1. Advising on Foreign Fund Arrangement: The firm provided counsel to a local conglomerate regarding a foreign fund arrangement facilitated by a U.S.-based asset management company. This transaction held a staggering value of 200 million USD.
2. Review of Charge Documents: LAW FIRM IN BANGLADESH undertook the review of charge documents related to the acquisition of credit facilities from Commercial Bank of Ceylon Limited PLC by a local conglomerate, amounting to 3.8 million USD.
3. Preparing Mortgage Documents: The firm played a pivotal role in preparing mortgage documents for the sanction of credit facilities by Commercial Bank of Ceylon Limited PLC, totaling 509,094 USD.
4. Issuance of Debt Securities: LAW FIRM IN BANGLADESH provided advice, drafted documents, reviewed agreements, and negotiated with key stakeholders for a local conglomerate issuing debt securities (Zero Coupon Bonds) with a transaction value of 8.4 million USD.
5. Vetting of Corporate Guarantee Documentation: The firm vetted corporate guarantee documentation in favor of CHB Building Technologies for a local client, amounting to 1.5 million USD.

An In-Depth Look at Banking & Finance Law in Bangladesh

Asset Finance

Asset finance plays a pivotal role in the purchase or lease of assets, such as equipment, machinery, and vehicles. Borrowers’ balance sheet assets are used as collateral, ensuring the security of the financial transaction.

Advisory Services

Advisory services cover regulatory issues related to establishing new financial products, branches, and entities in Bangladesh. Navigating the complex regulatory landscape requires expert guidance.

Financial Restructuring

Financial restructuring involves refinancing and debt restructuring. It is a critical process for companies facing financial challenges, enabling them to regain stability and viability.

Corporate Rescue & Insolvency

In cases of distressed companies, shareholders, creditors, and administrators/receivers turn to experts in corporate rescue and insolvency. Skilled legal support is crucial in these intricate matters.

Project Finance

Project finance is essential for large-scale projects such as power generation, infrastructure development, mining, natural resources, and utilities. This type of financing is often linked to the project’s future income and success, particularly in Public-Private Partnerships (PPP).

Banking

Banking law in Bangladesh encompasses a wide array of financial services, including acquisition financing, corporate financing, term loans, letters of credit (L/Cs), venture capital, preferential shares agreements, revolving credit, and real estate, asset, and trade financing.

Islamic Financing

Islamic financing principles such as Mudaraba, Hire Purchase (Shirkatul Melk), and Murabaha are also prevalent in Bangladesh, ensuring compliance with Sharia law.

Steps of a Money Loan (Artha Rin) Court Suit

In the context of Artha Rin (Money Loan) Court Suits, there are specific steps that must be followed for the legal process to unfold systematically:

1. Auction before Filing Suit: Section 12 of the law stipulates that an auction should occur before the suit is filed.
2. Special Time Limit for Filing Suit: Section 46 mandates a special time limit for initiating the suit.
3. Limitation of Claim: Section 47 imposes limitations on claims in Artha Rin suits.
4. Interest Calculation: Section 50 outlines how interest is calculated in these suits.
5. Plaint: The initial step under Section 8 is filing a plaint.
6. Summons / SR (Summons Return): Section 7 pertains to the issuance of summons.
7. Written Statement (WS): Sections 9 and 10 cover the submission of written statements.
8. Additional Statement against WS: Section 11 outlines the procedure for additional statements against written statements.
9. Ex Parte Decree: Section 19 relates to the issuance of ex parte decrees.
10. ADR (Alternative Dispute Resolution): Sections 22-25 provide for alternative dispute resolution methods.
11. Hearing: The legal process proceeds to a formal hearing.
12. Argument: Parties present arguments based on the evidence and documentation.
13. Judgment and Decree: The final decision, as well as the decree, is issued in accordance with Section 16.

Steps of an Artha Rin Execution Suit

The process of executing Artha Rin suits involves the following steps:

1. Filing of Artha Rin Execution Suits: Section 27 initiates the process of filing these suits.
2. Time Limit for Filing of Artha Rin Execution Suits: Section 28 imposes time limits.
3. Summons: Section 30 covers the issuance of summons in execution suits.
4. Auction: Section 33 pertains to the auction process.
5. Certificate for Possession and Use: Section 33(5) addresses certificates for possession and use.
6. Certificate of Title: Section 33(7) relates to certificates of title.
7. Appeal: Section 41 provides for the possibility of appealing the execution.
8. Revision: Section 42 outlines the process of revision.
9. Leave to Appeal: Section 43 pertains to seeking leave to appeal.

Capital & Profit Repatriation for Foreigners

Foreign investment in Bangladesh for industrial projects with government approval allows for repatriation from Bangladesh, including capital appreciation, subject to obtaining prior approval from Bangladesh Bank. Dividends and profits can be remitted with fewer controls. Prior approval from Bangladesh Bank is essential before profits from foreign subsidiaries can be repatriated.

Foreign nationals temporarily residing in Bangladesh can remit their current assets, such as savings from salary and dividends, with prior permission from Bangladesh Bank. There are now no restrictions on the receipt of remittances from foreign countries. There are also no restrictions