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Term Paper
On
Separate Legal Personality (SLP)
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Jahangirnagar University
Department of Accounting & Information Systems
A Term Paper
On
Separate Legal Personality (SLP)
Course Title: Corporate Laws & Governance
Course Code:3104
Submitted To:
Kanon Kumar Sen
Lecturer
Department of Accounting & Information Systems
Jahangirnagar University
Submitted By:
Group: ‘’SPIRITUAL SQUAD’’
Serial No. Name ID
01 Farjana Anjuman Anika 1759
02 Israt Jahan Eva 1753
03 Jarit Gomes 1772
04 Md Sojib Miah (L) 1780
05 Md Noor Hossain 1792
Department of Accounting & Information Systems
Jahangirnagar University
Date of Submission:22/09/2022
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Letter of Transmittal
Kanon Kumar Sen
Lecturer
Department of Accounting & Information Systems
Jahangirnagar University
Saver, Dhaka, Bangladesh
Subject: Submission of a Term Paper On Separate Legal Personality (SLP) Concept.
Dear Sir,
As per your approval, here is the term paper that we, the students of Group ‘’SPIRITUAL
SQUAD’’ from the AIS 9th Batch, were assigned on the topic. The knowledge we gained from
your course "Corporate Laws & Governance’’ was used to complete the term paper. We'd
want to express our gratitude for approving us to assign this topic for a term paper based on
cutting-edge technology. This job has provided us with the opportunity to investigate a
valuable aspect of "Separate Legal Personality" while also gaining a broad understanding of
all the components of Separate Legal Personality. We did our best to complete the term paper
in a meaningful and accurate manner as much as feasible. I hope you will recognize our
efforts.
Sincerely Yours
Group (SPIRITUAL SQUAD) iii
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Table Of Contents
Details Page Number
Cover page 03
Letter of transmittal 04
Chapter 1: Introduction 06
Chapter 2: Literature Review 07 to 12
Chapter 3: Data Collection 12 to 16
Chapter 4: Methodology 16 to 18
Chapter 5: Findings & interpretation 18 to 19
Chapter 6:Conclusion 19 to 20
References 21
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CHAPTER 1:INTRODUCTION
The topic name of our term paper is Separate Legal Personality(SLP). What we have done
through our whole term paper is to analyse how the concept of Separate Legal Personality
relates to our selected cases.
The corporation and the proprietors are two independent entities. A separate legal entity
implies an individual or organisation is comprehended by the legislation of a country. A sole
trader or partnership does not have a separate legal entity. In the case of sole proprietorship
and partnership businesses, the business discontinues when the owner dies or the owner
becomes bankrupt or hazardous sense. The corporation is a valid commodity that is diverse
and independent from the community that owns or runs the corporation. A corporation can
come into agreements segregated from that of the shareholders, but it also has particular
commitments such as the compensation of taxes.
And it’s a tremendous and revolutionary concept which remakes the viewpoint of Company
Law. Salomon Vs Salomon was the historical case from which this revolutionary perception
arose. Even though there is a lot of analysis on it, some limitations remain. Still now, judges
face a lot of confusion to declare the verdict on these types of cases. And the ''Corporate Veil''
adds another emphasis on this law. In the context of Bangladesh, directors, investors and
lenders are often misled due to its misinterpretation.
While doing the term paper on this topic, we mainly emphasized on data collection and tried
to collect the right information. Because if we cannot collect the right information then we
can never reach the right decision. The companies and taken cases are as follows:
1) Evaly- Fraud of Evaly.
2) Basic Bank- Basic Bank Money Scam.
3) Grameen Bank- Tax evasion of Grameen Bank.
We divided our term paper into parts. It was tough to arrive at the correct conclusion but still
we tried our best. Analyzing each case, we have shown how the company and the owner are
separate entities and the veil that exists between these two parties. To be err is to human
being, we apologise if mistake has taken place.
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CHAPTER 2: LITERATURE REVIEW
Every morning, when we wake up and go to read newspaper, we find discussion and conflict
about several cases on sperate legal entity. There are few cases on the ground of separate
legal personality in Bangladesh. For the purpose of our work, we have selected some
remarkable cases on the perspective of our country. Every cases contains ideas and elements
of our topic. The review of the cases we accept are as follows:
2.1:Evaly
Figure: Logo of Evaly
Thriving in an industry is no easy task unless one realizes it pretty well. The E-commerce
business has become prominent around the globe for quite some time. In the recent past,
Bangladesh has sustained numerous good e-commerce exercises from stabilized online
sellers to emerging entrepreneurs.
Evaly was an e-commerce marketplace operating in Bangladesh since its conception in 2018
as an e-commerce platform, the company has focused on competitive product pricing to
stimulate growth.
Mohammad Rassel was the founder and CEO of Evaly. His wife Shamima Nasrin was the
chairperson of Evaly.
Offers elegant discounts on high-value commodities like motorcycles, cars, mobile phones,
home equipment and furniture etc. At the beginning of the association, they give very
tempting offers like 100%, and 150% cashback to the clients called "Cyclone" (Cyclone),
"Earthquake" (Earthquake) etc. This policy of their company has developed enthusiasm
among people as well as many criticisms. Its beginning in 2018 as an e-commerce platform,
the company has focused on competitive product pricing to drive expansion. Offers attractive
discounts on high-value products like motorcycles, cars, mobile phones, home appliances and
furniture etc. At the beginning of the organization, they give very tempting offers like 100%,
and 150% cashback to the customers called "Cyclone" (Cyclone), "Earthquake" (Earthquake)
etc. This strategy of their business has created enthusiasm among people as well as many
criticisms. Although successful with the strategy of increasing customers by attracting huge
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offers, discounts and cashback, the company has been accused of various irregularities
including customer suffering.
Figure: Assets & Liabilities of Evaly
According to the statement of Bangladesh Bank, as of February 28, 2021, Evaly had 44 lakh
85 thousand clients. At the same time, the company's debt stood at 403 crores. Current
assets were Tk 65 crore 17 lakh. Apart from this, Evaly did not provide the products even
after taking an advance of Tk 214 crore from the customers for the product price. 190 crores
are also owed to the companies from which Evaly bought the products. Only 16 per cent of
the outstanding amount can be paid with these current assets.
The inspection group of Bangladesh Bank found some irregularities in the company.
Customers made complaint that they found the office of Evaly shutdown.
The court made restrictions on the Chairperson and CEO of leaving the country.
However, the CEO & Chairperson were arrested from their Mohammadpur residence at sep
16,2021.
However, so far we have found out that the owner and chairperson of Evaly Company has
been arrested, but still do not know exactly who benefited the most from this crime.Using
the SLP to find out the real beneficiary the real culprit then there is the use of separate legal
personality and there is enough opportunity to work on it. We can know by using it whether
this company should have been sued or the owner.
Before that, a customer sued against the CEO on the ground of annexation of money.
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Some customers protest and make strike to get back the invested money.
From 18th September 2021, the office made official announcement of shutdown the
company. (ফয়সাল, 2022)
2.2:Basic Bank Limited
Figure : Logo of Basic Bank Limited
The bank was established on August 2, 1988 under the Companies Act of 1913 and has been
officially operating since January 31, 1989 starting with .It started its journey with a total paid
up capital of 80 million rupees (70% share of BCC Foundation and 30% share of Bangladesh
Government). The Bangladesh government acquired 100% shares of the foundation and the
bank on 4 June 1992 to prevent the impasse that arose when the global BCCI Foundation
became defunct on 6 June 1991. But the bank was not nationalized. The bank has gained
recognition as a government-owned bank. At present the bank has 69 branches and 14 ATM
booths in the country. Bangladesh Development
Basic Bank Loan Scandal:
Between 2009 and 2012, the ACC started investigating immediately after complaints of
disbursement of. Allegations were made against the then board of directors of the bank for
approving loans illegally without checking the loan documents, without collateral, and giving
loans to fake individuals and institutions without considering the rules. The agency's
investigation revealed that the board of directors of the bank approved loans illegally without
checking institutions without considering the rules the loan documents, without collateral,
and giving loans to fake individuals. But at that time Bachchu claimed to the journalists that
what he did was done with the approval of the board. Even if he makes mistakes in many
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cases, not all the responsibility is his. After five consecutive years ofinvestigation, 56 cases
were filed in three days on September 21, 22 and 23, 2015. The accused in these cases are in
Motijheel, Paltan and Gulshan police stations in the capital. ACC has registered 56 cases so
far in connection with the scam. Out of these, the charge sheet of two cases was submitted
but the court did not accept it as the investigation report was incomplete. As a result, ACC is
worried about when this scam will end. Although the ACC is claiming the recovery of about
Tk 2,500 crore as a success. However, according to the law, the ACC has not been able to
Figure: Profit & Loss Of Basic Bank
identify real criminals and bring them to justice. Three and a half thousand crore rupees
were stolen from the state-owned Basic Bank by fraud. Most of those involved in this loan
scam 11 years ago have not yet been brought under the law. Among the main accused in
the case, Basic Bank's former MD Kazi Fakhrul Islam and DMD Monayem Khan are still at
large. DMD Fazluz Sobhan absconding abroad. প্রতিবেদক, (2022)
We see the impact of (SLP) in Basic Bank's Tk
4500 crore loan scam. It is not yet decided who
is really responsible here. Through
research, we have initially understood
that there were many financial irregularities
when Abdul Hai Bachchu was the
chairman of Silo. But he has not been arrested
yet because the court has not yet decided
whether to charge the company or the
owner.According
Figure: Basic Bank Scams in 10 Years
to Yugantar audit report, the bank's loan disbursement and foreign loan disbursement
policies were not followed in the case of these irregularities. Apart from this, Central Bank
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notification, financial regulations and government orders have been disobeyed at various
times. It is commented in the report that all the mentioned irregularities happened mainly
due to the weak internal control system and audit program of the bank. প্রতিবেদক, ন., 2022.
2.3:Grameen Bank
Figure: Logo of Grameen Bank
Grameen Bank a specialised bank established on October 1983 as a body corporate under the
Grameen Bank Ordinance 1983 for extending credit exclusively to the landless men and
women of rural areas of the country. VAT detectives discovered VAT evasion of around Tk 67
crore by investigating the business activities of Grameen Bank. As evidence of VAT evasion
found, a case filed against the bank under the VAT Act.
Besides, another irregularity case filed against Grameen Bank for providing Vatable services
without registering as per VAT Act.
The investigation report and case documents regarding Grameen Bank's irregularities sent to
Dhaka West VAT Commissionerate. The concerned VAT Commissioner had also been
requested to monitor that the Grameen Bank authorities pay the applicable VAT as per the
monthly income and purchase information.
Grameen Bank made the logic that as a social institution, Grameen Bank was getting VAT
exemption. They added that the owner of the bank was the poor class people of the society.
So ultimate burden would fall on them.
The VAT Intelligence Directorate, a team led by its Deputy Director Nazmun Nahar Qaiser
reviewed the accounts of Grameen Bank from January 2011 to December 2016 and
uncovered the irregularities.
The investigation found that Grameen Bank had been providing banking and non-banking
services under S056 code since its inception; But not registered as per VAT Act.
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All suppliers of taxable goods or taxable services are required to obtain VAT registration. All
banks and non-banking institutions have to take this registration irrespective of the turnover.
This rule shall be applicable to all those who provide banking and non-banking services in
return for commission, fee or charge, whether state-owned, domestic or foreign commercial
bank or any financial institution or organization as defined in the Financial Institutions Act.
Grameen Bank provided micro-loans on instalment facility. For these loans they charged
charges, fees and commissions against various expenses, on which VAT was applicable at the
rate of 15 per cent as per law.
Apart from this, according to the VAT rules of 1991, the Grameen Bank was supposed to pay
tax at source against various expenses.
It was 23 crore 93 lakh 10 thousand 74 taka.
As such, Grameen Bank had evaded tax at the source of Tk 15 crore 38 lakh 89 thousand 256
and due to non-payment, another Tk 7 crore 23 lakh 26 thousand 977 interest had been
applied to them, according to the VAT Intelligence Directorate. (প্রতিবেদক,২০২২)
However, we already knew about the brief story of Grameen Bank's tax evasion. And VAT
Department already made obligations on the company to pay the VAT with interest.
Here, that fact is who is responsible for tax evasion whether the owner or the company itself.
Though the tax Department made obligations on the company without knowing the exact
responsible party.
Thus, our scope will be to find out the actual responsible party who involved with tax evasion.
CHAPTER 3:DATA COLLECTION
How the results of the research will come depends a lot on the data collection method, so we
have put a lot of emphasis on the data collection method. We have faced various problems
while collecting the data of our selected companies, but still we have tried our best from our
place.
3.1:Evaly
Evaly has made enormous wealth by selling attractive promotions at low prices. Shamima
Nasreen, the chairman of the e-commerce company, and Mohammad Russell, the managing
director, were imprisoned after the case of a victim in Gulshan police station in the capital.
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1. The plaintiff in the case filed in Gulshan police station on September 16 in the name
of Arif Bak illustrated in the statement that he ordered the goods worth 310,597 takas
from Evaly but did not receive them within the stipulated time. He complained of
misappropriation of money.
2. On September 19, 2021, a businessman named Kamrul Islam filed a case against
Russel-Shamima at Dhanmondi police station in the capital on charges of fraud,
embezzlement and oppression. In the statement of the case registered under sections
420, 406, and 506, the plaintiff mentioned that although he supplied electrical goods
worth Tk 35 lakh to Evaly's Dhanmondi office, Evaly did not pay his rights.
3. A lawyer filed another case in the Dhaka Metropolitan Magistrate Court. Reagan, the
plaintiff in the suit, said he saw the Cyclone offer at Evaly and ordered a motorbike.
The discounted price of which was 70099 taka and the market price was 127000
thousand takas.
4. On September 30, 'Rong Bangladesh' filed two check dishonour cases against Russell
and Shamima. The organization filed this case in the Chief Metropolitan Magistrate
(CMM) court of Dhaka because it could not encash the money collected from the sale
of 'gift vouchers. Two cases were pointed out under Sections 138 and 140 of The
Negotiable Instruments Act of 1881. Also, most of the cases are in the name of Russell
and Shamima.
5. The High Court has ordered a 5-member board commanded by former Appellate
Judge HM Shamsuddin Chowdhury Manik for the management, control and
management of Evaly.
6. The High Court has ordered Shamima Nasreen, the former chairman of Evaly to take
charge of the company. On 2022 August 24, Justice Muhammad Khurshid Alam
Sarkar's High Court bench gave an order in this respect.
Data source: The Daily Star
The Dhakatimes24
The Daily campus
3.2:Basic Bank
Data Collection Source Of Basic Bank :
First of all this data is collected from the secondary data source because it is unable for me at
that moment to collect primary level data. If I want to collect primary level data then I have
to go through sever interview of the management team of basic bank and this is totally
impossible for me . My all of collected data are taken from different journal like :
Prothom Alo
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Yugantar
Dhaka times
Noyadigoto
Besides these I collect some information from News of Somoy TV, Jamuna TV. Moreover , I
also collect information from You tube vedio and from NBR.
Data Collection of Basic Bank:
1) Ownership : 01. 100% State Owned Bank. 02. Professor Dr. Abdul Hashem (Chairman).
03. Sheikh Abdul Hye Bacchu (chairman) when the scandal happened.
2) Company: 01.Mr.MD. Anisur Rahman (Managing Director and CEO). 02. MD. Shamim
Ahmed (Director). 03. Dr. MD. Abdul Khaleque Khan (Director). 04. Nahid Hossain
(Director).
3) In this investigation, it came to light that the bank's then board of directors had
approved loans to fake properties without verifying the loan documents. Various cases
of irregularities are highlighted. Notable among these is
1) M/s Bay Navigation Ltd., a new customer of Dilkusha branch for the
purchase of Samudragrami vessels. About 72 crores loaned to. Although it is
mentioned that it is difficult to monitor the shipping business and there is a
possibility that this business will be damaged by natural disasters, loans are
distributed from that branch of the bank. Besides, no land and buildings have
been taken as collateral against this loan. The bank has not verified the actual
value of the purchased ship .
2) M/s Khadija & Sons have taken a loan of Tk 23 crore from Basic Bank by
keeping a mortgage of 25% of the land of Narsinghpur Mauza in Gazipur. The
owner of the organization. Shamim Ahsan submitted the land ownership deed
as security to the bank's Gulshan branch. But someone A. Majid submitted a
complaint to that branch claiming ownership of the same land. Later the
mortgage against the loan of Khadija & Sons proved to be fake.
4) Basic Bank filed 399 cases against borrowers amounting to Rs 4677.14 crores. 115
cases were settled, 129.17 crore rupees were recovered. There are still 284 ongoing
cases, the amount of money is 4547.97 crore. ACC has filed the main accused in the
case, including 156 other people including the former DMD of BASIC Bank, Monayem
Khan. They are still undecided whether to indict the bank's board of directors or the
owners.
5) The main accused in the case has been filed by ACC in the name of 156 people
including former DMD Monayem Khan.
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6) However according to the law ACC has not been able to identify the real criminals and
bring them to justice. They are still in a quandary whether to charge the bank's board
of directors or the owner.
3.3:Grameen Bank
Data collection policy:
For Grameen Bank Case's data collection we have chosen secondary data collection policy.
Because if we choose primary data collection policy then we have to physically go to different
branches and talk to managers and interview them which is very impossible. It is very difficult
to reach very directors physically and take their interview. Because of that we have collected
secondary data. We have tried to collect our data from various websites, NBR repots and
journals which will help us in decision-making.
Data sources:
Daily Newspapers : The Dhaka Tribune, Banik Barta, The Daily Star, Daily Samakal
Reports: NBR reports
Material Data are here blow:
1. Two cases if filed against Grameen bank.
2. One case is filed against the irregularities of providing VAT sources without any
registration as per VAT act.
3. Another case is filed against VAT evasion.
4. Investigation done by NBR
5. Grameen Bank is a social organisation.
6. Managing Director- Jahangir Hossen Howlader.
7. Dr. Mohammad Younus was the founder of this Bank.
8. Grameen Bank operates it’s banking and non banking business under S056 code.
9. It did not register under VAT law.
10. All banks and non-banks must register though.
11. Grameen bank formed under the special law.
12. Vat detection is uncovered VAT evasion of around 66,98,60,629 Tk.
13. The bank paid tk 34,910 in VAT Against its income from 2011 to 2016 .
14. But the bank should be charged to pay tk about 30.3 crore.
15. The bank must have to pay about tk 13.9 crore as 2℅ interest on the due VAT.
16. The bank paid 8.5 crore tk taxes at source, But bank was charged tk 23.9 crore.
17. The interest on the due tax at source iv over Tk 7.24 crore (Ahmed, 2022).
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In the data collection part we have tried to collect data on how 3 companies Evaly, Grameen
Bank, Basic Bank are involved with SLP. We use secondary level data because it is impossible
to collect primary level data at that moment. All our group members prefer daily newspaper
as data source like The Daily Star ,Prothom Alo, Dhaka Times, Shomokal, Noyadigonto etc.
Because we can know what is happening around us only through this newspaper. We also
used various TV news and NBR source. We have tried our best to include all the data in our
data collection part so that we can accomplish our research goal perfectly
CHAPTER 4 :METHODOLOGY
Our term paper is mainly developed by qualitative method and presented data are based
on theory. The sample data used by us was mainly collected all from the secondary sources
of data collection, within this earliest period we couldn't collect information from the
primary sources. The data has been collected from various secondary sources available
like articles, past research papers, financial reports of those companies, company profiles,
Wikipedia etc. But most of the secondary data we collected from the various newspaper.
The data that was collected from the above-mentioned sources have been studied and
analyzed to reveal the findings to draw fair conclusions.
4.1:Evaly
The investigation committee formed in the case of Evaly has not been able to submit any
report so far. But in most of the cases, we can see that The plaintiff the case has sued in the
name of Managing Director Russell and Chairman Shamima. Some of the charges brought
against them are embezzlement, irregularities and money laundering. But no case was filed
in the name of Evaly company. As each organization is different from the owners according
to the different entity of the company, the liability of the directors of the company is higher
here, the complaint is filed against the directors but not against the company .The company
became a different entity and later it was decided to manage Evaly again through new
directors. As a result, the interests of the company's creditors and customers have been
protected. Since the company is a different entity, a case was filed against Russel but not
against Evaly.
4.2:Basic Bank Limited
In this topic we have done so many research and come to an opinion in the methodology part
that :
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1. In the case of BASIC BANK we see that the court has not yet identified the real culprit.
They are in a dilemma as to who is the real culprit. The borrower or those who gave
the loan, the owner or the company?? Many big lawyers again said that why Sheikh
Abdul Hai Bachchu is not arrested yet? Since the verdict is not yet, we all remain in
dilemma.
2. We have researched and it seems that since the company has given loans without
verification, the company should be liable. Because According to the Companies Act,
1994, " A company has a legal entity distinct from and independent of it's members.
The creditors of the company can recover money only from the company. They
cannot sue individual members and the company is not anyway liable for the
individual debt of it's members". and the company is an artificial entity, it cannot act
on its own. It is our sole wish that they (the company) should be punished as the
negligence was committed by them, the owner is not involved.
3. And one thing we can say is that if the punishment is given properly then in the future
any other government or private in Bangladesh. Banks give loans with thought and
know the security against which they give loans.
4. If every bank in Bangladesh is honest and responsible in its own place, then such
financial scams will never be repeated in our country again.
5. We want those involved in the money scam of Basic Bank to be given appropriate
punishment, the court should give the judgment and execute it, not only we but every
people of Bangladesh want this.
4.3:Tax Evasion of Grameen Bank
We have already said in the data collection part of our term paper that we have collected the
data from the secondary medium. Now we will try to reach a correct conclusion using the
data we have collected.
For the purpose of our work we'll use the findings of this case presenting below: Salomon v.
Salomon Co. Ltd(1897) A.C22
A company is a legal entity in its own right separate from its members and continues in
existence until it is dissolved. (Principle of Separate Legal Entity of Companies in Bangladesh
- Jural Acuity, 2022)
As Grameen Bank is a company. So it is also distinct entity from the owner of the company. A
there are two parties one is the owner and the other is company itself.
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We have already seen that what charges have been made against Grameen Bank, they have
actually evaded tax and not registered their company under tax law.
Who is actually involved in these two acts? Even though the matter actually falls under the
Corporate Veil, notwithstanding we will give a decision from the point of view of our topic.
First of all, the company involved in tax evasion is clear from the information we collected.
Since the company is an artificial entity and the representatives of this artificial entity are the
managers and directors. The directors of Grameen Bank tried to evade the tax evasion issue
again and again, we have seen it in our collected data.
Therefore the owners have no liability with the tax evasion issue of Grameen Bank.
The principle of a separate legal entity of a company was recognised in the case of Salomon
v. Salomon and Co. Ltd (1897) A.C 22, which stated that a company has a separate existence
from its members. Thus, this concept protects the shareholders from being personally liable
for any wrong or obligations of the company. (Principle of Separate Legal Entity of Companies
in Bangladesh - Jural Acuity, 2022)
Now let's come to the issue of tax registration. After the formation of the company, the
issue of company registration is usually in the hands of the owners of the company and it is
their responsibility. Grameen Bank made through a special resolution, but then there was
no tax law issue.
And in this case, the liability put on the company. As the registration would have registered
after a long time of it's incorporation.
So the owner is not involved here.
Company is involved.
CHAPTER 5:FINDINGS & INTERPRETATION
5.1:Evaly: Since Investigation Officer has not submitted any investigation report
against Evaly so institutionally Evaly can continue their activities. The High Court has
ordered to
reconstitute Evay's Board of Directors.
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5.2:Basic Bank Scandal Research Findings : After reviewing everything
of Basic Bank, we find that the court has not taken all the decisions in 10 years, the case is
pending and the case is related to Separate Legal Personality. We have got some important
latest information from this case which we have presented in the form of a table .
1. Basic Bank made 399 cases against 1) The total customer loan
customers. amount is 4677.19 crore.
2. 115 cases have been settled. 2) Only 129.17 crore were
3. 284 cases are still ongoing. collected.
3) 4547.97 crore still
outstanding.
5.3:Tax Evasion of Grameen Bank : While dealing with Grameen Bank Case,
basically we found the right application of Separate Legal Personality(SLP) . The company itself
is responsible for the tax evasion and cannot deny the allegations made. And he cannot blame
the owners of the company for his own actions. The allegations made by NBR are true.
CHAPTER 6:CONCLUSION
The cases we have worked on in this part are: Fraud of Evaly, Tax evasion of Grameen Bank
and Basic Bank Money Scam. We have tried to highlight the various irregularities of these
companies. We have shown here only those anomalies that are consistent with our SLP
research. We have discussed these cases in the light of the Companies Act, 1994 and have
tried to show how we think the judgments of the pending cases may be.
However we have tried to highlight how separate legal entity works in the context of
Bangladesh and have tried to give our opinion in some cases. In some cases the directors of
the company commit corruption but try to continue it in the name of the company, while
many times the responsibility of the company falls on the innocent directors. But due to
separate legal personality, the real culprits have to face punishment.
After including all the facts of Basic Bank, we find that the company is not the guilty party
here, although the High Court has not given any final judgment in this case which has been
going on for 10 years. The High Court is of the opinion that the owner is not involved in the
4500 crore scam. Finally our only wish is that we all want justice. In the case of bank money
scam, the high court should give a fair verdict, punish the real culprits and apply the company
law properly in Bangladesh.
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We know that everything is done in the Company's name. It cannot connecting the
shareholders in the company. In the case of "Evaly", No case was filed against the name of
company. The liability of the directors of the company is higher here. The complaint is filed
against the directors but not the company. As a separate legal entity’s perspective the case
should be filed against the company. And finally the case of " Grameen Bank Ltd VAT Evasion
" we can find that the directors of Grameen Bank tried to evade the tax again and again, but
ultimately case was filed against the vat evasion. And the tax evasion issue is fully charged on
the bank as the company is separate from its members.
The cases we have taken are taken in the light of our Bangladesh so that we can use these
rules in real life if we face any problem when doing transactions.
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REFERENCES
o Islam, F., Evaly, the latest Digital Business Scam. Prothomalo. Available at:
https://en.prothomalo.com/bangladesh/crime-and-law/e-valy-the-latest-digital-business-scam
[Accessed September 22, 2022].
o Islam, F., Evaly, the latest Digital Business Scam. Prothomalo. Available at:
https://en.prothomalo.com/bangladesh/crime-and-law/e-valy-the-latest-digital-business-scam
[Accessed September 22, 2022].
o Sarkar, A., 2022. Evaly Scam: Swindling was the goal all along. The Daily Star. Available at:
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