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Bangladesh: BRPD Circular No. 12: Constitution of the Board of Directors and Fit and Proper Test for Appointment of Directors of a Bank Company
Directives containing provisions governing board of directors of the bank- company
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This Banking Regulations and Policy Department (BRPD) circular No.12 is aimed at all bank companies working in Bangladesh and includes:
- Restrictions regarding the constitution of the board of directors;
- Fit and proper test criteria for consideration and compliance of the appointing authority regarding:
- Appointment or reappointment;
- Filling up of casual vacancies of the offices of bank directors.
It states that the board of directors of a bank company needs to:
- Earn and maintain the confidence of depositors;
- Strive to protect the interests of its depositors as well as of the shareholders;
- Comprise competent and skilled personnel.
The circular imposes restrictions regarding:
- The total number of directors on the board;
- Family membership in the board;
- Professional experience and criminal records;
- Defaulted loans, bankruptcy and loyalty to the decision of the board.
The circular also issues directives about the letters and declarations that a candidate for the board of directors has to furnish.
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