4 members of a family can be bank directors

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MNA Business Desk: The cabinet on Monday approved the draft – Bank Company (Amendment) Bill, 2017 – which will allow four members of a family to be the directors of a bank.

The existing law permits only two members of a family to be the directors of a bank.

The cabinet gave the approval at its weekly meeting held at the Secretariat with Prime Minister Sheikh Hasina in the chair.

While briefing reporters after the meeting, Cabinet Secretary Mohammad Shafiul Alam said, “The Bangladesh Bank has also given a positive note in this regard.”

The draft law also restricts commercial banks from selecting, nominating, appointing and posting anyone to the posts of director, managing director and chief executive officer without any prior approval of the central bank.

The amended law will also allow directors to serve for three consecutive terms, which means nine years. They can be reappointed after a three-year break.