They suggested an effective regulatory body under the ministry of finance be formed for the insurance sector.

The participants also recommended an independent audit committee be made compulsory for all listed companies.

The recommendations were made at the plenary session of the two-day international conference on "Corporate Governance in Bangladesh", which concluded yesterday in Dhaka. The Center for Corporate Governance and Finance Studies of Dhaka University (CCGFS), Dhaka Stock Exchange (DSE), Organisation for Economic Corporation and Development (OECD) and the Asia Foundation jointly organised the conference.

Presenting the set of recommendations, Baqui Khalily of CCGFS said there must be a consolidating financial report for the group of companies.

The Companies Act needs to be revised in light of the corporate governance issue to protect the rights of minority shareholders, he said adding the disclosures should be in line with international financial reporting standard.

Moreover, steps should be taken for appointing an independent director in the board and an independent body should be formed to regulate the accounting, the CCGFS professor said.

Former governor of Bangladesh Bank Fakhruddin Ahmed stressed the need for more training of the directors.

Prof Hasung Jang of Korea University said the government must play a significant role to protect the interest of the common people.

Yawar Sayeed, managing director of Aims, said there is no regulator for the pension funds.

Insider trading is a very complicated issue in the corporate sector, he said urging the SEC to take actions against fictitious beneficiary owners' accounts.

MA Baree, former president of the Institute of Chartered Accountants, Bangladesh, pointed to the meagre fees of an auditor.

An auditor's fee ranges from Tk 5,000 to Tk 10,000 here and it hardly covers his travel cost.

Professor Humayun Murshed of CCGFS and Louis Bouchez of OECD also spoke at the session.