Bangladesh Bank (BB) in a circular on Wednesday said that only three from a single family could be banks’ directors.
The central bank sent the notification to the executives of the banks for immediate implementation and asked them to inform the Banking Regulation and Policy Department of the BB through a letter.
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The circular stated that if a bank has more than three directors from a single family, the rest must resign. The BB has left the issue of who will resign to the board of directors of banks.
Earlier as per section 15 (10) of the Bank Companies Act, 1991 (Amendment 1998) one family could have four directors.
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The central bank issued the circular to comply with Section 15 (10) of the Bank Companies (Amend) Act, 2023.
Though the number of directors from a family has been reduced, the tenure of a director has been extended from 9 years to 12 years in the latest amendment to the Bank Companies Act.
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