Regulatory Alerts2025-01-12
Added
DFIM Circular Letter No. 01: Appointment of Independent Directors in a Finance Company
Bangladesh Bank establishes a panel of qualified independent directors for finance companies, which must be appointed from this panel with prior approval from the regulator. Independent directors are prohibited from signing guarantees for loans taken by the finance company and are shielded from personal liability for the company's loan defaults under Section 16(5) of the Finance Companies Act, 2023. Finance companies must notify Bangladesh Bank of any vacancy in the independent director position within 30 days and of any impending term expiration at least 30 days in advance. Any independent director whose impartiality is compromised or who faces obstruction in providing independent opinions must immediately report this in writing to Bangladesh Bank.