NBFI independent directors must be between 45-75 years old: Cenbank
For someone to be eligible to be an independent director, they must have completed their higher education in specific subjects like economics, banking, finance, business administration, law, or accounting from a recognised university
From now on, no one below the age of 45 or above 75 can be appointed as an independent director of a non-bank financial institution (NBFI).
Besides, the remuneration against the post cannot be more than Tk50,000, the Bangladesh Bank said in a circular sent to all managing directors of NBFIs on Wednesday (13 March).
This directive will come into effect immediately, stated the circular.
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Besides, according to the circular, for someone to be eligible to be an independent director, he or she must have higher education completed in a specific subject like economics, banking, finance, business administration, law, or accounting from a recognised university.
Furthermore, anyone who has the possibility of a conflict of interest with an NBFI cannot be an independent director.
A person who is listed as a wilful defaulter of loans will not be eligible to be a director of any NBFI for 5 years from the date of being relieved from the said list.
These directors can be hired for three years at a time and can be rehired after their term ends.
An NBFI can have a maximum of 15 directors, including 2 independent directors. However, the approval of the central bank will be required for the appointment and reappointment of independent directors.
Independent directors will receive a maximum of Tk10,000 for attending each meeting of the board or sub-committee of an NBFI.
However, they will be able to participate in a maximum of two meetings of the board of directors, two meetings of the executive committee, one meeting of the audit committee, and one meeting of the risk management committee per month.
They will receive a maximum of 2 days' hotel and travel expenses for travelling to and from the head office in the district town.
The nominee cannot be a director of a bank, company, insurance company or its subsidiary company. No person shall be appointed to this post if he or she has been convicted of any criminal offence or is involved in forgery, financial fraud or any other illegal activity
