The Bank Company (Amendment) Bill 2023 was passed in Parliament on Wednesday with the provision to allow the directors to remain in their position for 12 years consecutively.

According to the present law, tenure of this directors is nine years.

Finance Minister AHM Mustafa Kamal moved the Bill and it was passed by voice vote.

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The Bill mentioned that after completing 12 years in the position of director, one can not return to the same post before three years.

Opposition Jatiya Party MPs staged walkout protesting inclusion of this provision.

Some 15 MPs from the opposition party joined the walkout, Jatiya Party Secretary General Mujibul Huq told reporters after the walkout.

The opposition MPs also protested against the way of inclusion of the provision which was not included in the original Bill. It was later inducted in an amended  proposal by ruling party MP elected from Tangail Ahsanul Huq (Titu).

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At that time, the House became chaotic.

Later, Speaker Dr Shirin Sharmin Chaudhury gave her ruling on the issue citing rules of procedure.

The proposed law also includes a provision that not more than three directors of a bank can be from the same family.

Besides, the draft act also proposed strict measures in terms of borrowing by board members from banks as submission of collateral was made mandatory for them.

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Currently, there can be four directors from one family, but this has now been reduced to a maximum of three.

As per the proposed provisions, the banks must send the list of willful loan defaulters to Bangladesh Bank (BB) and it can impose a ban on overseas travel against them.

Stricter measures are also related to the issuance of their trade licence, and company registration under the Bangladesh Securities and Exchange Commission and the Registrar of Joint Stock Company and Firm.

A willful defaulter cannot be eligible to be a director of a bank or financial institution until after five years have passed after being excluded from the list of willful loan defaulters.

If any director of a bank becomes a willful loan defaulter, Bangladesh Bank can declare his post vacant.

If a bank fails to send the list of loan defaulters to the central bank in time, the bank can be fined Tk50 lakh to Tk1 crore.

The bank will have to count fines of an additional Tk1 lakh for each day's delay.

According to the draft law, despite having the financial ability, if a person or institution fails to repay a loan, it will be considered willful default.

About the definition of a wilful defaulter: "If anyone takes financial benefits from a bank or financial institution providing false information in their name or of their family members, the individual will be considered a willful defaulter."

At the same time, if someone states a specific purpose for taking a loan from a bank or financial institution, but uses the loan for other reasons, the recipient will be considered a willful defaulter.

A provision is also included here so that Bangladesh Bank can regularly inspect different institutions and foundations run under the law.

According to a provision in the proposed bill, any sister concern or individual of any  group is not a wilful defaulter if it is authenticated by Bangladesh bank and if there are logical ground for defaulting the loan by individual or entity or company then the mentioned person/ entity or company won't be a defaulter.

These type of entities, individuals or company which the case may be will be eligible for granting further/ fresh loans subject to Bangladesh Bank permission and complying the instructions thereon.

Several MPs of the Jatiya Party reacted strongly to the proposal of extending the directorship upto 12 years. Participating in the discussion of passing the bill, they raised the question whether the bill can be amended or not. They demanded an explanation from the speaker.

Jatiya Party MP Fakhrul Imam said that a member of the government party proposed an amendment to make the term of the directorship for 12 years.

“It was not time to raise the bill. Since the government party member of parliament has made this proposal, it is likely that it will be accepted.”

He said banks should stop political interference, and the banks should be freed from the hands of business groups.

Mujibul Haque said that the directors are the masterminds of bank looting.

“It seems that it has been brought on the recommendation of many bank managers who are working to convince the finance minister. We strongly oppose this proposal to make the director's term 12 years.”

Pointing to the donation of bank owners to the Prime Minister's Fund, Kazi Feroz Rashid said that they are only giving this money to the Prime Minister just to publish large pictures on the first and last pages.

He said that the law was brought to provide benefits to bank owners.

“They misuse people's money. When they catch a cold, they go to Singapore with bank money.”

Feroz Rashid in a satiric tone proposed to make the term of the bank directors for life.

He said that this law is being amended only to give benefits to bank owners.

“Private banks now report to Bangladesh Bank. They decide who will be the governor of Bangladesh Bank, who will be the deputy governor. The government has become hostage to the bankers.”

Pir Fazlur Rahman said that the government has brought this  amendment to keep their favourite directors in the posts. “But the process is not right,” he said.

Finance Minister AHM Mustafa Kamal while responding said that the bad debt has come down from 13.2 percent to 8.6 percent in the last 14 years.

“Branches of government banks have doubled. Bank deposits increased 7 times. Year-on-year profit increased 8 times.”

When Ahsanul Islam, the member of parliament of the government party, went to raise his amendment proposal, the members of the opposition party raised an uproar.

Then Speaker Shirin Sharmin said that the MP was allowed to raise the amendment proposal first, and later the matter will be explained.

Later, she gave her ruling. Referring to the relevant sections of the Rules of Procedure of the Parliament, the Speaker said that in the original amendment there was doubt in clause 10 of the bill. And the amendment proposed by Ahsanul Islam is also a subsection of this clause, she said.

“No new clause has been added to the bill. Nor has any such new clause been added. It is not irrelevant.”

After the speaker's speech, when Jatiya Party MP Fakhrul Imam wanted to speak, the speaker did not gave the microphone and said, "this is my ruling. You have nothing more to say about this.”

After the speaker's ruling, she gave the floor to the finance minister.

At this time, the members of the opposition party started shouting without microphone.

Later, the speaker stopped the finance minister and told the opposition party members, "We will not do anything outside the rules."

But the shouts of the opposition continued.

At one point Feroze Rashid was given the microphone.

He addressed the finance minister and said, “Did you accept the life term extension that we talked about? This one director will remain forever. Accepting that? You have to say clearly which one it is.”

Mujibul Haque also gave a similar statement. At this time, the members of the opposition party started shouting. There was deadlock in Parliament for some time.

Later, the Speaker gave the microphone to the finance minister again. But he did not speak. At this stage, the speaker went for voting on the amendment.

All clause-wise amendments are put to vote. At this time, the Jatiya Party members walked out.