Financial institutions will no longer be able to conduct board meetings in a virtual manner
September 24, 20241 Min Read

Bangladesh BankOwn Correspondent: Bangladash Bank has given instructions to cancel the procedure in the virtual meeting of the board of directors and subsidiary committee in non-bank financial institutions.

On Tuesday (September 24), the Financial Institutions and Markets Department of Bangladesh Bank issued instructions in this regard.

According to the directives of the central bank, the meeting of the board of directors and subsidiary committees of the finance company should be held in a hybrid manner, taking into account the importance of the meeting and the necessity of physical presence to ensure economical use of electricity and energy. At present, the previous circular has been canceled considering the overall situation. In order to ensure the active and effective participation of directors in the meetings of the Board of Directors and Subsidiary Committees of finance companies and for the purpose of keeping the regular activities of the organization running properly, advice has been given to organize the meetings with the physical presence of all concerned.

However, foreign directors of finance companies that are not 100% domestically owned can participate in the meetings of the board of directors and subsidiary committees in virtual mode. This directive is issued under the powers provided under Section 41 of the Finance Companies Act, 2023, which will come into effect immediately.