Regulatory Alerts2024-02-14
Added
BRPD Circular No. 03: Appointment of Independent Directors of a Bank-Company and their Duties, Responsibilities and Honorarium
This circular mandates that scheduled banks in Bangladesh appoint a minimum of two to three independent directors to their boards, subject to a maximum board size of twenty. It establishes strict eligibility criteria, including a minimum of ten years of experience, age limits between 45 and 75, and specific educational and professional backgrounds, while prohibiting individuals with conflicts of interest, criminal records, or tax defaults. The document defines remuneration structures, including a monthly honorarium of 50,000 BDT and meeting fees, and outlines duties such as ensuring regulatory compliance and chairing the audit committee. Appointment requires prior written approval from Bangladesh Bank, involving a vetting process and submission of specific declaration forms.