Take prior approval to reappoint directors
Banks will have to take prior approval from Bangladesh Bank to reappoint their directors in line with the Banking Companies Act 1991.
The central bank yesterday issued a notice saying that some banks have recently reappointed directors in violation of the act.
"Every appointment and reappointment of directors will require approval from the central bank as per the act," read the notice.
Some banks have also given false explanations to this end, sidestepping the rules and regulations, it said.
The banks have not taken approval from the central bank while reappointing their directors and they thought that there is no requirement to do so, said a central bank official.
Against this backdrop, the central bank has issued show cause notices on the banks concerned.
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