Chairs of a bank’s 3 committees cannot hold any position in subsidiaries

Chairpersons of a bank’s executive, audit, and risk management committees cannot hold any position in that bank’s subsidiary or its foundation.

Bangladesh Bank (BB) made it clear in a circular issued on Wednesday. The BB also asked banks that if any chairpersons of a bank’s executive, audit and risk management committees hold a post in any subsidiary company or a foundation has to resign by June 30 this year.

In addition to the board of directors, each bank has an executive committee, an audit committee and a risk management committee comprising with the directors. Board members define the specific duties of the committee.

Board can’t form any other permanent, temporary or sub- committee except the above mentioned three committees, according to the BB rules.

The BB also directed the banks that a shareholder director, a nominated director or an independent director after serving the bank for at least one year cannot be appointed in any post of that bank.