DHAKA: The ‘Bank Company (Amendment) Bill, 2018’ was passed in the Parliament on Tuesday (January 16) allowing the doubling of number of directors in a bank board from a single family and extending the tenure of directors.
As per the amended law, four members of a single family instead of existing two can hold the post in the board of directors of a bank at a time, while a person can hold the post of a director for nine years continuously instead of current three years.
Finance Minister Abul Maal Abdul Muhith moved the bill in the Parliament. Later, the House passed the bill with voice votes with deputy speaker M Fazley Rabbi Miah in the chair.
However, some MPs of Jatiya Party, including Kazi Firoz Rashid, Fakhrul Imam and Rawshan Ara Mannan, placed some proposals and urged the JS to send the bill for scrutiny. They objected to passage of the bill.
The Jatiya Party MPs walked out from the House protesting the passing of the amendment bill.
The amended law brought changes for fulfilling the demand of private bank owners, particularly the promoters. In 2016, the Bangladesh Association of Banks, a platform of the private bank owners, demanded amendment to the back law at a meeting with the Finance Minister.
The Finance Minister placed the amendment bill in the Parliament on September 12 in 2017 amid opposition from the Jatiya Party MPs. The Jatiya Party MPs had termed the governments move in this regard unethical.
After placing bill in the Parliament, the House had sent it to the parliamentary standing committee concerned for scrutiny.
Earlier, the Cabinet approved the draft of the bill on May 8 in 2017.
On November 21, the parliamentary body recommended for passing the Bank Company (Amendment) Bill.
The act was last amended in 2013 restricting to maximum two the number of directors from a family on the bank board. The 2013 amendment had been passed in line with the advice of the International Monetary Fund (IMF) and followed international best practices. It had come against the backdrop of directors getting involved in irregularities.
BDST: 2120 HRS, JAN 16, 2018
EHJ
