FE Report
Hearing on IDRA circular, which barred the insurance company directors from simultaneously holding directorship of financial organisations, is likely to be held in the full bench of the Appellate Division of the Supreme Court on April 8, sources said.
On Thursday, Chamber Judge of the Appellate Division Justice Syed Mahmud Hossain stayed an ad-interim order passed by the High Court Division in this regard.
Following two separate writ petitions, a bench of the High Court Division on Monday allowed them to remain as directors in the insurance company and the financial institution simultaneously.
The Chamber Judge at the same time fixed April 8 for hearing on the matter in the full bench of the Appellate Division.
Attorney General Mahbubey Alam, assisted by Barrister Abul Kalam Azad, stood for the government in the court while Barrister Rafiq-ul Huq represented the petitioners.
The Insurance Development and Regulatory Authority (IDRA) on January 26, 2012 issued a circular requesting the directors of insurance and banking or non-banking financial organisations to leave twin directorships under Section 75 of the Insurance Act 2010.
The IDRA circular stated that simultaneously holding the posts of directors of insurance and financial institutions is a violation of the Insurance Act.
Challenging the circular, former chairman of Delta Life Insurance Company Syed Moazzem Hossain and director of Phoenix Insurance Company Ltd Deen Mohammad filed the petitions with the HC on Monday last.
Upon the petitions, the HC bench comprising Justice Tariq ul Hakim and Justice Md Faruque passed the order. Then the government filed appeal with the Appellate Division against the HC order on Tuesday.
Mr Azad said about 60 directors have already left their dual directorships in compliance with the IDRA circular.
SC to hear IDRA circular on April 8
FE Team | Published: March 23, 2012 00:00:00 | Updated: February 01, 2018 00:00:00
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