BB circular scales down banks family directors to three

Staff Reporter :
The Bangladesh Bank (BB) has asked banks to bring down the number of directors from the same family to threein line with the Bank Company (Amendment) Act 2023.
According to a 2018 amendment to the Bank Company Act 1991, a maximum of four members from a family were allowed to seat on the board at the time of a specific bank.
But the new Act, which was passed in parliament on June 21 this year, specified that the number of directors from a single family can’t be more than three.

As per the circular issued on Wednesday, the directors concerned should reach a mutual understanding if one of them has to be resigned from the board in order to comply with the law in the shortest possible time.
If they fail to reach any mutual understanding, a lottery has to be held at a board meeting to pick the director who would have to step down.