Banks' board meetings should discuss scheduled issues only: BB
Bangladesh Bank yesterday asked banks' directors not to take decisions in the board meetings on topics not included in the agenda of the day.
If unscheduled issues are discussed in the meetings, directors don't get the opportunity to know beforehand about the topics. As a result, they cannot give their opinions by assessing various aspects of the issues, a BB notice says.
Management of banks analyse issues in details before placing them in the board meeting. But there is no such scope for examining unscheduled topics.
So, there is a possibility that the interest of depositors and banks will be hindered if unplanned issues are discussed in the board meeting.
Board members, however, will be allowed to talk about unscheduled issues if they are considered highly important. The details of the discussion, however, will have to be added to the minutes of the board meetings.
Banks have been asked to comply with the order immediately in line with the Bank Companies Act 1991.
The Bangladesh Bank has recently found that boards of some banks took decisions on unscheduled issues in the meetings.
