Finance ministry has drafted a set of guidelines on forming board of directors of the subsidiary companies of the state-run banks and non-bank financial institutions with the provision that the size of the board would be nine-member.
The ministry has recently sent the draft to the Bangladesh Bank seeking its opinion.
A central bank official said that the state-run banks and NBFIs were now structuring the respective boards of subsidiary companies following their own guidelines.
But the state-run banks and NBFIs will have to follow the government directives to form the board of their subsidiary companies after finalizing the guidelines, he said.
Three general managers or deputy managing directors of the state-run banks or NBFIs will be attached with the board of subsidiary companies.
A government high official and a chartered accountant will be appointed as member of the board of subsidiary companies.
A retired official, who gathered experience as an employee of the rank of general manager or above post in a bank, will be nominated as a board member of the subsidiary company.
A teacher of public university will also be recruited at the board of subsidiary company.
The state-run banks and NBFIs will appoint managing director at their respective subsidiary companies from outside the institutions (banks or NBFIs).
The managing director of the subsidiary company will also play the role as board member of the subsidiary company, according to the draft guidelines.
The BB official said that a board member of the subsidiary company will be allowed to keep his directorship for three years.
A person will be appointed at the board of subsidiary company for two times in a row.
The official said that the central bank would agree with the draft guidelines and it will send the opinion to the finance ministry in the shortest possible time.
The ministry has recently sent the draft to the Bangladesh Bank seeking its opinion.
A central bank official said that the state-run banks and NBFIs were now structuring the respective boards of subsidiary companies following their own guidelines.
But the state-run banks and NBFIs will have to follow the government directives to form the board of their subsidiary companies after finalizing the guidelines, he said.
Three general managers or deputy managing directors of the state-run banks or NBFIs will be attached with the board of subsidiary companies.
A government high official and a chartered accountant will be appointed as member of the board of subsidiary companies.
A retired official, who gathered experience as an employee of the rank of general manager or above post in a bank, will be nominated as a board member of the subsidiary company.
A teacher of public university will also be recruited at the board of subsidiary company.
The state-run banks and NBFIs will appoint managing director at their respective subsidiary companies from outside the institutions (banks or NBFIs).
The managing director of the subsidiary company will also play the role as board member of the subsidiary company, according to the draft guidelines.
The BB official said that a board member of the subsidiary company will be allowed to keep his directorship for three years.
A person will be appointed at the board of subsidiary company for two times in a row.
The official said that the central bank would agree with the draft guidelines and it will send the opinion to the finance ministry in the shortest possible time.
source: New Age
