Banks asked to reduce number of directors from same family to 3
The Bangladesh Bank has asked commercial banks to reduce the number of directors from the same family to three.
According to the Bank Company Act 1991, a maximum of four persons from a single family could be appointed as directors of a bank. But, the Bank Company (Amendment) Act 2023 has reduced the number to three.
A circular issued by the central bank yesterday said if it becomes necessary that a bank director must resign to comply with the law, the directors will determine through mutual agreement who would resign. In case of failure to reach a mutual agreement, it shall be determined by holding a lottery in a meeting of the board of directors, said the circular.
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Through the circular, the central bank has asked commercial banks to inform its Banking Regulation and Policy Department after reducing the number of directors from the same family to three.
A managing director of a private bank told TBS that at least three banks have more than three directors from the same family. These banks have been asked to reduce the number of directors from a single family to three at the earliest.
The banker said the central bank should have fixed a specific time in this case.
