AGENCY PROBLEM AND THE ROLE OF

AUDIT COMMITTEE: IMPLICATIONS FOR

CORPORATE SECTOR IN BANGLADESH
INTRODUCTION

• Separation of ownership and control

• Corporate governance systems
• Reforms
• Audit committee
• legal structure and internal management
AGENCY RELATIONSHIP AND AGENCY COSTS

• Utilize the special skills

• Relax constraints on the principal’s
• Risk-averter
• Information asymmetry
• Conflicts of interest
• Moral hazard with hidden action
• Adverse selection
• lack of information
NATURE OF AGENCY RELATIONSHIP IN BANGLADESH

• family-owned
• state owned
• foreign-owned companies
• local employment and production
• conflict of interest in developing, transaction and emerging market
AUDIT COMMITTEE

• sub-committee
• internal audit
• Board of directors
• independent or non-executive directors
AUDIT COMMITTEE FOR AGENCY PROBLEM

• principal-agent
• reward incentive schemes
• provide audited financial statements
• Outside blockholders
• Outside non-executive directors
PRESENT SCENARIO OF CORPORATE SECTORS IN BANGLADESH
AND AUDIT COMMITTEE

• development of the private sector

• strong corporate governance
• business management
• strategic management
• risk management
• ICAB
CONCLUDING DISCUSSIONS AND POLICY RECOMMENDATIONS

• corporate type of organization

• independent audit committee
• preparing, auditing, analyzing, or evaluating financial statements
• minority shareholders
• The Securities and Exchange Commission
THANK YOU!