Bangladesh Bank bars presence of non-members at board meetings

The Banking Regulation and Policy Department of the central bank on Thursday barred the presence of non-members at board meetings of banks to prevent confidential matters from being leaked outside.

As a result of information discussed in the meetings being published, depositors and the banks have suffered losses, reads a circular by the Bangladesh Bank.

Meetings of the board of directors of banks should avoid the presence of any outsiders or shareholders other than the managing director and company secretary.

If any officer of the bank is called upon by the board, he or she may be present at the meeting while presenting relevant matters only — not for the entire period of the meeting.

The Bangladesh Bank has recently been informed that the board of directors of some banks have violated this directive which was earlier given in a circular issued on December 26, 2013.

In view of the overall situation, the central bank has again instructed all that under no circumstances should any outsider — without special summons by the board or board's support committee — any officers or employees of the bank, or shareholders, attend meetings of the board of directors.

The directive was issued under the powers conferred by Section 45 of the Bank Company Act, 1991.