Repatriation of residual money payable to foreign shareholders
in case of winding up of a company.
Please refer to the FEID Circular No. 01, dated 6 May, 2018 which outlines operational procedures to repatriate the sale proceeds of share to foreign shareholders against their shares sold to residents.
02. To facilitate transfer of residual money payable to foreign shareholders in case of winding up of the concerned company, it has been decided that:
(a) in case of winding up of a company by the Court or subject to supervision of the Court, for remittance of money payable to foreign shareholders, Authorized Dealers (ADs) shall submit application to Foreign Exchange Investment Department (FEID), Bangladesh Bank, Head Office, Dhaka along with an order of the honorable Court evidencing endorsement of the amount determined to be distributed to the shareholders after paying up all the liabilities and payments as per law and a certificate confirming that all liabilities in Bangladesh including tax claims and other statutory payment obligations have been fully paid, issued by liquidator/official receiver/or such person as the Government may, by notification in the official Gazette, appoint for the purpose.
(b) in case of voluntary winding up of a company, for remittance of money payable to foreign shareholders, ADs shall apply to FEID, Bangladesh Bank, Head Office, Dhaka along with all relevant documents, mutatis mutandis, including but not limited to the list given in Annexure-A.
03. ADs shall forward the permission request for remittance of money payable to foreign shareholders, only after being satisfied that the target company has complied with the provision of Paragraph-2(A)(c) & 2(B), Chapter-9, Volume-I of Guidelines for Foreign Exchange Transactions2018 or similar guidelines in force at the time of issuance/transfer of share.
Please bring the instructions of this circular to the notice of all your concerned clientele.