The board of directors of export-oriented Envoy Textiles has been temporarily reconstituted until the disposal of a case filed by Abdus Salam Murshedy, former managing director and one of the founders of the company, along with some other directors, as per a High Court order issued last month.
Becoming a public limited company in 2012 on starting commercial operations in 2008, the thread, fabric and garment maker has a paid-up capital of Tk 167 crore and a reserve of Tk 354 crore.
It provided 5 per cent cash dividend in both 2021 and 2020. Its stocks dropped 1.32 per cent to Tk 45 yesterday.
The case was filed under the Companies Act, 1994 against the company and other directors challenging some amendments to an "Article of Association" of the company.
A group of the directors called NRC (Nomination and Remuneration Committee) meeting to change its managing director Murshedy when he filed a case to stop the process, said a person who is familiar with the issue but not authorised to talk to the media.
As the group has over 51 per cent shareholding they have the right to change Murshedy, he said.
"We want the person in the position who has the capability to run the company," he added.
In 1984, Kutubuddin Ahmed together with Abdus Salam Murshedy, then a famous footballer of Mohammedan Sporting Club, started his garment business, which is known as Envoy Group.
During July of 2021 to March of 2022, its sales figure hit 889 crore, logging a profit of Tk 35 crore.
In this nine months, the company's earnings per share was Tk 2.12.
One of its factories, Envoy Denim received the Leadership in Energy and Environmental Design's platinum certification -- the first Bangladeshi exporter to get the recognition from US-based Green Building Council in the denim category.
The first denim facility in Bangladesh to use rope-dyed technology, Envoy has a production capacity of 4.5 million yards each month, according to its website.
Being a backward integrated facility, Envoy has its own spinning facility capable to produce 62 tonnes of yarns a day.