Regulatory Alerts2023-02-22
Added
BRPD Circular No. 04: Identification of Limited Company as per The Companies (2nd Amendment) Act, 2020
The circular authorizes registered limited public banking companies in Bangladesh to amend their names and Memoranda of Association to include the suffix "Public Limited Company" or "PLC" in compliance with Section 11K(a) of the Companies Act, 1994, as amended by the Companies (2nd Amendment) Act, 2020. Banks are exempted from submitting separate prior applications for name and memorandum changes under Sections 116 and 117 of the Bank-Companies Act, 1991; however, they must apply to this department after completing the legal formalities to publish the gazette notification of the changed name.
Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka. Ref. No. BRPD-Circular-04 09 Falgun 1429 BRPD Circular No. -04 Date: ----------------------- 22 February 2023 Managing Director/Chief Executive All Scheduled Banks operating in Bangladesh.
Dear Sir, Regarding identification of Limited Company under the Companies (2nd Amendment) Act, 2020. Through the Companies (2nd Amendment) Act, 2020, a new Section 11K titled 'Identification of Limited Company' has been inserted into the Companies Act, 1994 (Act No. 18 of 1994). Sub-section (a) of the inserted section contains the provision that 'in the case of a Limited Public Company, the words "Public Limited Company" or "PLC" shall be written at the end of its name.' To comply with this provision, it is necessary to change the name and Memorandum of Association of bank-companies to include "Public Limited Company" or "PLC" at the end of their names. According to Sections 116 and 117 of the Bank-Companies Act, 1991, the concurrence of Bangladesh Bank is required for changing the name and Memorandum of Association of bank-companies respectively.
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In accordance with the provision of Section 11K(a) inserted in the Companies Act, 1994, authority is hereby granted to the concerned bank-companies to include "Public Limited Company" or "PLC" at the end of the name of registered limited public bank-companies in Bangladesh and to perform the necessary legal formalities for changing the name and Memorandum of Association of the bank-companies for this purpose.
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While performing the formalities to include "Public Limited Company" or "PLC" at the end of the name of bank-companies, there will be no need for bank-companies to submit separate applications to Bangladesh Bank under Sections 116 and 117 of the Bank-Companies Act, 1991 respectively. However, after completing the formalities for changing the name, bank-companies must submit an application to this department along with information regarding the matter to publish the gazette notification of the changed name.
This circular is issued under the powers conferred by Sections 116 and 117 of the Bank-Companies Act, 1991 respectively.
Yours faithfully, (Md. Harun-Ar-Rashid) Director (BRPD) Phone: 9530095