Four of a family can be bank directors

Cabinet okays draft law to create one-stop service for investors

A Monitor Report 16 May, 2017  |    -      +
Dhaka : The cabinet on May 8 approved the draft law allowing four members of a family to be the directors of a bank.

As per the amended law one director will be able to remain in his post for nine consecutive years.

The cabinet also approved the draft of "Bank Company (Amendment) Bill, 2017."

The existing law permits only two members of a family to be the directors of a bank.

The cabinet gave the approval at its weekly meeting held at the Secretariat with Prime Minister Sheikh Hasina in the chair.

While briefing reporters after the meeting, Mohammad Shafiul Alam, Cabinet Secretary said it was the desire of the founding directors of private banks that four members of a family should be allowed to be directors of a bank instead of two.

"The Bangladesh Bank has also given a positive note in this regard," he said.

The cabinet also gave its clearance to amend the law allowing directors of commercial banks to serve for three consecutive terms.

A director can currently remain on board for six years two consecutive three-year terms, Shafiul Alam told the media. However, after a break for three years, an individual can be once again made a director.

"The amended law will allow them to serve for three consecutive terms, which means nine years. They can be reappointed after a three-year break," he said. The cabinet also approved in principle the draft of a new law titled “One Stop Services Act, 2017” aimed at attracting more local and foreign investment in the country.

Under the proposed draft law, a central one stop service authority comprising four authorities, e.g., Bangladesh Export Processing Zone Authority, Bangladesh Investment Development Authority, Bangladesh Economic Zone Authority and Bangladesh High-tech Park Authority will work through coordination among themselves.

Some 27 types of services, including 16 common services like trade license, visa assistance, electricity, gas, water, telephone services, would be provided from there to lessen the sufferings of investors.

Shafiul Alam said necessary rules will be formulated later to ensure services.

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