Dissolve Basic Bank’s board of directors :BB

NewsWorld365 NewsWorld365 , May 29, 2014

Bangladesh Bank on Thursday sent a letter to the Bank and Financial Institutions Division of the Finance Ministry recommending dissolution of the state-owned Basic Bank for widespread ‘irregularities and corruption.unb

Bangladesh Bank governor Dr Atiur Rahman sent the letter addressing the Banking and Financial Institutions Division secretary Dr M Aslam Alam. A copy of the letter was also sent to Finance Minister AMA Muhith.

Central Bank officials said the letter was sent as follow-up of the removal of Basic Bank managing director (MD) Kazi Faqurul Islam on May 26 on charge of negligence of duty and irregularities as well as his failure to protect the depositors’ interests.

The Basic Bank is a state-owned specialized bank established by the government in order to finance and promote the country’s small and medium industries.

Confirming the issuance of the letter, Bangladesh Bank general manager (governor’s secretariat) AFM Asaduzzaman said the central bank has recommended the Banking and Financial Institutions Division to take appropriate action as per Sections 46 and 47 of the Bank Company Act 1991.

Section 46 of the Bank Company Act 1991 mentions, “Where the Bangladesh Bank is satisfied that it is necessary to remove a chairman or director or principal executive officer, by whatever name he be called, of a banking company in order to prevent its affairs being conducted in a manner prejudicial to the interests of the banking company or its depositors or to secure in the public interest the proper management of the banking company, it may, after committing its reasons to writing, issue direction that such chairman, director or principal executive officer be removed from his office.”

Section 47 of the Bank Company Act, which has given absolute authority to the central bank for dismissing a board of directors of a banking company, says, “Where the Bangladesh Bank is satisfied – a) that the Board of Directors of a banking company, by whatever name it be called, conducts its affairs in a manner detrimental or prejudicial to the interest of the banking company or its depositors… a Board of Directors being dismissed, the person appointed in this behalf from time to time by the Bangladesh Bank shall have all the powers and functions, and accomplish all the duties of the Board.”

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