BB asks banks to bring down directors from same family to 3

Bangladesh BankFile photo

Bangladesh Bank (BB) has asked the banks to bring down the number of directors from the same family to three, reports news agency BSS.

The Bank Company (Amendment) Act 2023, which was passed in parliament recently, specified that the number of directors from a single family can't be more than three, according to a BB circular issued on Wednesday.

A maximum of four members from a family were allowed to seat on the board of a bank at the same time as per an amendment of the Bank Company Act 1991.

As per the circular, the directors concerned should reach a mutual understanding if one of them has to be resigned from the board in order to comply with the law.

If they fail to reach any mutual understanding, a lottery has to be held at a board meeting to pick the name of the director who will have to step down.