[Dhaka Correspondent] Bangladesh Bank has issued a circular asking the banks to realign their boards of directors in line with the recently amended Bank Company Act. The circular, issued Monday, said a board would be consisted of 13 directors with none from depositors.
This cancels the 2003 guidelines for formation of bank boards and banks are to comply with the amended act put into force on October 8, explained a BB official.
The new circular said if a family holds 5 per cent or less of total sponsor capital, it can have a director on the board while the number can be two for a family that accounts for shares between 5 and 10 per cent. The tenure of directors will be three years and they can hold the post for two terms. For becoming a director, a person must have minimum 10 years of experience in management and business, and s/he must not be convicted by any court of law.