In which situations the office of a director falls vacant according to Banking Companies Act, 1991?
The Banking Companies Act, 1991, specified the situations in which the office of a director falls vacant. A director will lose his position if:
- Fails to Repay Loan or Interest: If the director of a banking company fails to repay loans, installments, or interest on loans taken from a bank.
- Fails to pay security/ guarantee money: If the director fails to pay the money he is bound to for any security, or
- Fails to perform roles: If the director fails to accomplish any duty to be accomplished by him, and the responsibility for which he has been appointed.
(a) Bangladesh Bank will send notice to the director to pay the said advances, loans, installments, interests, or money, or to accomplish the said duties.
(b) If the director fails to accomplish those duties and payments within two months after receipt of the notice, in that case, the office of the director shall be vacant.
(c) If the director replies within thirty days after receipt of the notice, the decision of the Bangladesh Bank shall be final. 96th BPE, 8(a)
Read Also:
