BRPD Circular No. 01: Taking Prior Approval of Bangladesh Bank to Appoint Alternate Director in Bank Companies

Bangladesh Bank Chief Executive Motijheel, Dhaka-1000 Bangladesh BRPD Banking Regulation and Policy Department

30 Poush 1431 BRPD Circular No.-01 Date: ------------------- 11 January 2025

Managing Director/Chief Executive Officer All Scheduled Banks Operating in Bangladesh

Dear Sir,

Regarding taking prior approval of Bangladesh Bank to appoint an alternate director in bank companies.

Reference is drawn to your attention to BRPD Circular No.-2 dated 11 February 2024.

2. In accordance with clause 6 (k) of the aforementioned circular, instructions have been issued to submit necessary documents/information to Bangladesh Bank within 7 (seven) days of taking the decision to appoint an alternate director. However, the appointed alternate director may participate in the bank's board meetings solely for informational purposes without the prior approval of Bangladesh Bank.

3. In continuation of the aforementioned circular, with the aim of establishing good governance in the banking sector, instructions are hereby given that a director of a bank company may appoint an alternate director following the appropriate instructions mentioned in the circular due to continuous absence for a period of not less than 3 (three) months abroad. However, the appointed alternate director cannot perform the duties of an alternate director or participate in any meeting of the board/committees assisting the board without obtaining prior approval from Bangladesh Bank.

4. These instructions are issued under the powers granted by Section 15AAA(3) of the Bank Companies Act, 1991.

5. These instructions shall take effect immediately.

Yours faithfully,

(Md. Alauddin) Director (BRPD) Phone: 9530095