Bangladesh Bank has constituted a new board of National Bank dissolving the existing one on charges of various irregularities.
The central bank has taken this decision following a recommendation of the Bangladesh Securities and Exchange Commission (BSEC) due to various reasons including the approval of loans violating rules, misuse of power by the board and selection of directors.
Bangladesh Bank disclosed the decision through two separate orders on Thursday.
According to the order, the existing board of the National Bank has been dissolved to protect the interest of the depositors as well as general customers.
The central bank has taken this decision following a recommendation of the Bangladesh Securities and Exchange Commission (BSEC) due to various reasons including the approval of loans violating rules, misuse of power by the board and selection of directors.
Capital market regulatory agency Bangladesh Securities and Exchange Commission (BSEC) commissioner Sheikh Shamsuddin Ahmed, speaking to Prothom Alo, said, "At a meeting on Wednesday, we decided to dissolve the board and constitute a new one to protect the bank. In a letter we requested Bangladesh Bank to take necessary steps in this regard."
"Bangladesh Bank has taken steps. We think the interest of the clients and investors will be protected," he added.
Bangladesh Bank spokesperson Mezbaul Haque said the responsibility of the board was to protect the interest of the depositors. As they are unable to do that, the board has been dissolved and a new board has been formed.
Constitution of new board
According to another order of Bangladesh Bank, seven directors and independent ones have been recruited to constitute the new board.
Of the seven-member board, three are independent directors and four directors.
The responsibility of the board was to protect the interest of the depositors. As they are unable to do that, the board has been dissolved and a new board has been formedMezbaul Haque
Independent directors are: Dhaka University Business Administration Institute's former professor Syed Farhat Anwar, Bangladesh Bank's former executive director Md Serajul Islam and Southeast Bank PLC former managing director M Kamal Hossain.
Of them, Syed Farhat Anwar is the chairman of the board. Anwar has been recruited on a condition that he will resign from the post of independent director in Meghna Bank.
On the other hand, four new directors are: Parvin Haque Sikder, entrepreneur Khalilur Rahman, on behalf of Sikder Insurance Company representative director Md Shafiqur Rahman and entrepreneur as shareholder director Moazzem Hossain.