BB asks banks to cut family-member directors to three

Bangladesh Bank (BB) has asked the banks to bring down the number of directors from a family to three from existing four.
The central bank asked the banks to comply with the directive as per the Bank Company (Amendment) Act 2023 and inform its Banking Regulation and Policy Department (BRPD) soon after reducing the number.
Earlier, the Bank Company Act 1991 allowed a maximum of four members from a family in the board of a bank at the same time.
But the new law, which was passed in parliament on June 21 last, specified that the number of directors from a single family cannot be more than three.
The concerned directors should reach a mutual understanding if one of them has to resign from the board, said a circular issued in this regard on Wednesday.
"If they fail, a lottery should be held in the board meeting to choose the director who would have to step down."
The BB said the issue should be settled within the shortest possible time and let the BRPD know the update.

jasimharoon@yahoo.com