BB makes draft policy to appoint directors from bank depositors | The Daily Star
12:00 AM, March 13, 2008 / LAST MODIFIED: 12:00 AM, March 13, 2008

BB makes draft policy to appoint directors from bank depositors

Bangladesh Bank has set a draft guideline on appointment of directors from the depositors' side to ensure their representation for protecting their interests, according to sources.
The draft guideline will be published in newspapers soon to elicit public opinion before finalising it.
Under the Banking Companies Act 1991, directors are appointed by shareholders and depositors have no say in it whatsoever even though they bear a considerable part of the risks.
Collapse of the Oriental Bank in 2006 is an example how depositors could be affected for wrongdoings of the management.
Depositors do not have any statutory right to receive company accounts, attend annual general meetings, table resolutions or ask any questions. They can risk their money but have no say on how the bank might be governed or whether its resources might be used for genocide, war, or unethical activities.
“Earlier, the BNP government in 2003 took a similar move to appoint directors from the depositors, but it did not take for reasons unknown,” a senior BB official told The Daily Star yesterday.
In 2003, the BB amended the laws that did not allow appointment of directors from depositors, he added.
A depositor has to be a graduate and maintain a bank account at least for two years to be eligible for being a director, the BB draft guideline said.
It also said the would-be director and his/her family members' shares could not exceed more than one percent of the paid-up capital.
He/she cannot be a defaulter or be a member of a political party.
On the selection criteria, the draft guideline said every banking company would be asked to send names of a list of 25 depositors who according to the guideline are eligible to be directors.
After assessing all the issues, a committee comprising three directors of BB will appoint maximum two directors for a banking company for a period of three years, but the time can be extended for another term, it said.

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