Bangladesh: BRPD Circular No. 12: Constitution of the Board of Directors and Fit and Proper Test for Appointment of Directors of a Bank Company, April 26, 2003

Publication Date: 26 Apr 2003
Published by: Dhaka, Bangladesh: Bangladesh Bank
Document Type: Other (PDF)

View this Document (12 KB)   Email this Document

Directives containing provisions governing board of directors of the bank- company

This “Banking Regulations and Policy Department (BRPD) circular No.12” is aimed at all bank companies working in Bangladesh and includes:

• Restrictions regarding the constitution of the board of directors;
• Fit and proper test criteria for consideration and compliance of the appointing authority regarding:
  • Appointment or reappointment;
  • Filling up of casual vacancies of the offices of bank directors.

It states that the board of directors of a bank company needs to:

• Earn and maintain the confidence of depositors;
• Strive to protect the interests of its depositors as well as of the shareholders;
• Comprise competent and skilled personnel.

The circular imposes restrictions regarding:

• The total number of directors on the board;
• Family membership in the board;
• Professional experience and criminal records;
• Defaulted loans, bankruptcy and loyalty to the decision of the board.

The circular also issues directives about the letters and declarations that a candidate for the board of directors has to furnish.