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Amendments to the Bank Companies Act, 1991

By Adnan Karim

The Government has decided to bring amendments to the Bank Companies Act 1991 by the Bank Companies (Amendment) Ordinance 2007. Major tightening measures are expected. Highlights of the new ordinance are:

• Changed definition of default loans
• Maximum number of Board of Directors is 13 and their tenures are two three-year terms;
• A family having above 5% shares would be entitled to have not more than two directors on the board and a family having less than 5% shares would be able to hold one post of director;
  
• Total amount of capital increased from Taka. 1 billion to Taka. 2 billion;
• Duration of overdue period of loans reduced from six months to three months;

Full post as published by Law Chronicles Online on August 29, 2007 (boomark / email).