The Bangladesh Bank (BB) has requested that banks limit directors from the same family to a maximum of three.
According to a BB circular released today, the Bank Company (Amendment) Act 2023, which was recently passed in parliament, stipulates that there can only be three directors from one family.
An modification to the Bank Company Act of 1991 limited the number of family members who might serve on a bank’s board to four at once.
According to the circular, the concerned directors should come to an agreement if one of them needs to step down from the board in order to comply with the legislation.
If they are unable to come to an agreement, a board meeting must be called to select the departing director by lottery.
