Some insurance directors also on bank, FI boards
Saturday, 19 June 2010
FE Report
As many as 140 directors of private insurance companies are also directors of banks and other financial institutions (FIs).
The new Insurance Act 2010 has barred a director of any insurance company from becoming director of other financial institutions including banks.
"The Bangladesh Insurance Association (BIA) has received names of at least 140 sponsor directors of different member companies, who are simultaneously holding the position of directorships either of banks or FIs," an Association source informed the FE.
After the enactment of the new insurance law by the Parliament in March this year, the Association recently asked its member companies to send names of their respective company's directors who are also the sponsor directors of banks and FIs.
Simultaneously, the BIA is also pursuing the government for the amendment to the particular provision that has barred directors of insurance companies from becoming directors of other FIs.
"We have already made an appeal to Finance Minister AMA Muhith for the amendment to the provision. The Association is also going to seek the Prime Minister's intervention in this respect," BIA Chairman AKM Rafiqul Islam told the FE Friday.
After the enactment of the new insurance law, the Association at a press conference also demanded amendment to some of the articles including the one that has restricted a director of an insurance company from holding the same post at any other financial institution or bank.
As many as 140 directors of private insurance companies are also directors of banks and other financial institutions (FIs).
The new Insurance Act 2010 has barred a director of any insurance company from becoming director of other financial institutions including banks.
"The Bangladesh Insurance Association (BIA) has received names of at least 140 sponsor directors of different member companies, who are simultaneously holding the position of directorships either of banks or FIs," an Association source informed the FE.
After the enactment of the new insurance law by the Parliament in March this year, the Association recently asked its member companies to send names of their respective company's directors who are also the sponsor directors of banks and FIs.
Simultaneously, the BIA is also pursuing the government for the amendment to the particular provision that has barred directors of insurance companies from becoming directors of other FIs.
"We have already made an appeal to Finance Minister AMA Muhith for the amendment to the provision. The Association is also going to seek the Prime Minister's intervention in this respect," BIA Chairman AKM Rafiqul Islam told the FE Friday.
After the enactment of the new insurance law, the Association at a press conference also demanded amendment to some of the articles including the one that has restricted a director of an insurance company from holding the same post at any other financial institution or bank.