HC stays BB order to wrap up AB Bank Foundation activities

FE Report brThe High Court (HC) Division of the Supreme Court has ordered a three-month stay of the operation of a Bangladesh Bank (BB) order that had asked AB Bank to wrap up all the activities of its subsidiary AB Bank Foundation.brThe HC passed the order recently in response to a writ petition filed by AB Bank challenging the BB's order. brJuly 13 last, BB asked AB Bank to close all activities of AB Bank Foundation within the next three months for its alleged violation of the existing Bank Companies Act. brIn its order, the central bank also ordered the authorities concerned to confiscate the entire shares of IFIC Bank held by the AB Bank Foundation and submit the same to the BB. brAccording to the Bank Companies Act, any company or individual can hold maximum 10 per cent share of a company. But the AB Bank Foundation was holding more than 18 per cent share of the IFIC Bank and then sold around 12 per cent keeping 6.0 per cent in hand, a BB investigation found.