DFIM Circular Letter No. 09: Policy on Formation of Board and Responsibilities of Directors of Finance Companies

Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh. Ref No: DFIM/Policy/09 DFIM Circular Letter No. 09

To: Chairman, Board of Directors and Managing Director/Chief Executive Officer All Finance Companies operating in Bangladesh.

Dear Sir,

With reference to the subject cited above, attention is drawn to DFIM Circular No. 01, dated: 29 February 2024, DFIM Circular No. 02, dated: 13 March 2024, and DFIM Circular Letter No. 40, dated: 12 December 2024.

2. The following regulations shall apply in the appointment of directors, alternate directors, and nominated or representative directors of finance companies:

a) Directors of finance companies shall hold at least a bachelor's degree;

b) In the case of appointment of alternate directors, the regulations regarding eligibility and suitability for appointment as a director shall apply to the concerned director; and

c) In the case of appointment of nominated or representative directors on behalf of any institution or company, the regulations regarding eligibility and suitability for appointment as an independent director shall apply to the concerned director.

3. In addition, all other instructions issued in DFIM Circular No. 01, dated: 29 February 2024, shall remain unchanged.

4. These instructions are issued under the powers conferred by Section 41(2)(d) of the Finance Companies Act, 2023, and shall take immediate effect.

Yours faithfully,

(Gautam Kumar Ghosh) Director (DFIM) Phone: 9530178.

Date: 03 Baishakh 1432 16 April 2025

Department of Financial Institutions and Markets