Constitution:

The Constitution of Bangladesh has formed the basis for the nation's political organization since it was adopted on November 4, 1972. However, the original constitution has undergone a number of changes since every party in power had made amendments to this document. According to the Constitution, the state has a positive role to play in reorganizing society in order to create a free and equal citizenry and provide for the welfare of all. The government is required to ensure food, shelter, clothing, medical care, education, work, and social security for the people.

Executive Branch:

The Prime Minister acts as the head of the government and runs the day-to-day affairs of state. While the Prime Minister is formally appointed by the President, he or she must be an MP who commands the confidence of the majority of parliament. Even though the president is the head of the state the position does not hold much authority in Bangladesh and is to a large extent a ceremonial position.

However, during the tenure of the bipartisan caretaker government which is responsible for the conduct of fair and free elections and transfer of power the President�s powers are substantially increased. The caretaker government of Bangladesh is a form of government system in which the country is ruled during an interim period between the removal of an old government and the takeover of a newly elected government. As the outgoing government hands over their power, the caretaker government comes into place. The main objective of the caretaker government is to create an environment in which an election can be held in a free and fair manner. The head of the government, who is called the Chief Adviser, is selected by the President, and the Chief Adviser selects the other advisers. The administration is generally distributed between the advisers. The Chief Adviser and the other advisers are committed for their activities to the President.

Elections are held every five years involving all citizens over the age of 18. There are 345 seats in the parliament including 45 reserved seats for women, elected from single-member constituencies. The officers of the caretaker government must be non-partisan and are given 3 months to complete their task.

Legislative Branch:

The legislative branch of the government is a unicameral Parliament, or Jatiyo Sangsad (House of the People), which makes the laws for the nation. Members of Parliament, who must be at least twenty-five years old, are directly elected from territorial constituencies. Parliament sits for a maximum of five years, must meet at least twice a year, and must meet less than thirty days after election results are declared. The assembly elects a speaker and a deputy speaker, who chair parliamentary activities. Parliament also appoints a standing committee, a special committee, a secretariat, and an ombudsman. Parliament debates and votes on legislative bills. Decisions are decided by a majority vote of the 300 members, with the presiding officer abstaining from voting except to break a tie. Parliament has the ability to reject the national budget or to delay implementation.

Judicial Branch:

The Supreme Court of Bangladesh is the highest judicial organ in the country and comprises the Appellate Division and the High Court Division, The Supreme Court consists of the Chief Justice and a number of other Judges. The Chief Justice and the Judges appointed to the Appellate Division sit only in that division and other Judges sit in the High Court Division. The President appoints the Chief Justice and other Judges. A Judge holds office until he attains the age of 65 (sixty five) years. The Appellate Division hears and determines appeals from Judges, degrees, orders or sentences of the High Court Division. The High Court Division has superintendence and control over the Subordinate Courts and functions as the Appellate Court. Administrative tribunals exercise jurisdiction in respect of matters as specified in the constitution. There are currently two administrative tribunals. At the district level, the District Court is headed by the District and Sessions Judge who is assisted by Additional District Judges, Subordinate Judges, Assistant Judges and Magistrates.

Rights of benefits of Foreign Investors (Industrial Policy, 1999):

a) Foreign investment, with particular preference to foreign direct investment will be encouraged in all industrial activities in Bangladesh including service industries and toll manufacturing, excluding those in the list of "Reserved Industries" and ready made garments, banks, insurance companies and other financial institutions. Such investments may be undertaken either independently or through joint ventures, either with the local private or public sector. The capital market will also remain open for portfolio investment.

b) The policy framework for foreign investment in Bangladesh is based on Foreign Private Investment (Promotion and Protection) Act, 1980 which provides for;

- Non-discriminatory treatment between foreign and local investment
- Protection of foreign investment from expropriation by the state and
- Ensured repatriation of proceeds from sale of shares and profit.

c) For foreign investment, there will be no limitation pertaining to equity participation, i.e. 100 percent foreign equity will be allowed. Fully foreign owned firms or joint ventures will in no way be obliged to sell their shares through public issues, irrespective of the amount of their paid-up capital. However, foreign investors or companies with foreign investment will be eligible to buy shares through the stock exchange. Foreign investors on companies may obtain full working capital loans from local banks. The terms of such loans will be determined on the basis of bank client relationship.

d) Foreign entrepreneurs will enjoy the same facilities as the domestic entrepreneurs in respect of tax holiday, payment of royalty, technical know-how fees etc. A foreign technician employed in foreign companies will not be subjected to personal income tax up to 3 years, and beyond that period his/her personal income tax payment will be governed by the existence of non-existence of agreement on avoidance of double taxation with country of citizenship.

e) Full repatriation of capital invested foreign sources will be allowed. Similarly profits and dividend accruing to foreign investment may be transferred in full. If foreign investors reinvest their repatriable dividends and or retained earnings, those will be treated as new investment. Foreigners employed in Bangladesh are entitled to remit up to 50 percent of their salary and will enjoy facilities for full repatriation of their savings and retirement benefits.

f) The process of issuing work permit to foreign experts on the recommendation of investing foreign companies or joint ventures will operate without any hindrance or restriction. "Multiple entry visa" will be issued to prospective foreign investors for 3 years. In case of experts, "multiple entry visa" will be issued for the whole tenure of their assignments.

g) Foreign investment in "Thrust Sectors", particularly in small industrial units, will be given priority in allocation of plots in BSCIC industrial estates.

h) Investment of non-resident Bangladeshis will be treated as par with foreign direct investment.

i) Measures will be taken to protect the intellectual property rights of new products and processes.

j) Investment guarantee and dispute settlement will be guided by international arrangements and provisions.Constitution: