The Bangladesh Bank on Thursday asked registered banks not to give excess financial facility to the members of board of directors for attending the board meetings violating the Bank Company Act 1991. The BB also asked the banks to prohibit presence of non-members and shareholders at their board meetings as well as its (board) supplementary committees meetings.
To this end, the BB issued a circular to chairmen and managing directors of all registered banks saying the central bank had recently been informed that some banks were now giving excess financial facility to their board members for attending the board meetings.
A board member will be able to receive maximum Tk 5,000 to attend a board meeting, but some banks are now paying Tk 25,000 to Tk 30,000 to their board members for attending a single meeting, a BB official told New Age on Thursday.
The BB circular asked the board members of the banks not to receive excess financial facility for attending the board meetings as such type of facility violated Article 18 under the Bank Company Act 1991.
The BB circular also said that the central bank had observed that some banks had recently allowed the non-members and the shareholders in participating at their board meetings which was unexpected.
-With New Age input
