New “Public Interest Entity” Category Introduced in BangladeshNovember 2, 2023
The latest regulations introduce a novel concept, defining a “public interest entity” based on the minimum workforce employed. According to the FRC, for a corporation or institution to be classified as a public interest entity, it must have a workforce of at least 50 individuals.
In these regulations, “workforce” encompasses all individuals engaged within an entity or establishment, whether on a permanent, temporary, casual, contractual, or outsourcing basis, and whether they receive a salary or participate in profit-sharing arrangements. The term “corporation or institution” pertains to any entity established under the purview of the law or duly registered and licensed in accordance with the relevant legal requirements.
The FRC or its authorized representatives have the authority to require entities to furnish a range of documents, including staffing rosters, appointment guidelines, salary records, payroll data, financial statements, audit reports, and more, to allow for the verification of the actual size of the entity’s workforce.
If the FRC is satisfied that the information and documentation provided show that the entity meets the required staffing level, it will categorize it as a public interest entity. However, if the entity fails to supply the required information or documents, the FRC can initiate legal action against it.
These groundbreaking regulations expand the FRC’s oversight to encompass a broader spectrum of organizations, ushering in an era of enhanced transparency and accountability within these entities.