BB asks banks to bring down directors from same family to 3

Staff Correspondent: Bangladesh Bank (BB) has asked banks to bring down the number of directors from the same family to three.
The Bank Company (Amendment) Act 2023, which was passed in parliament recently, specified that the number of directors from a single family can’t be more than three, according to a BB circular issued yesterday.
A maximum of four members from a family were allowed to seat on the board of a bank at the same time as per an amendment of the Bank Company Act 1991.
As per the circular, the directors concerned should reach a mutual understanding if one of them has to be resigned from the board in order to comply with the law.
If they fail to reach any mutual understanding, a lottery has to be held at a board meeting to pick the director who would have to step down.