BANK COMPANY ACT.ppt

7/27/2019 BANK COMPANY ACT.ppt

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Welcome to the Session

onThe Bank Companies Act, 1991


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CONTENTS

PART-I Preliminary (Sec 1-6)

PART-II Business of Banking Companies (Sec 7-50)

PART-III Illegal Banking Transactions by Companies, Etc. (Sec 51-56)

PART-IV Prohibition of Certain Activities in relation to Banking

Companies (Sec 57)

PART-V Acquisition of the Undertaking of Banking Companies (Sec

58-63)

PART-VI Suspension of Business and Winding up of Banking

Companies (Sec 64-77)

PART-VII Speedy Disposal of Winding up Proceedings (Sec 78-108)

PART-VIII Miscellaneous (Sec 109-123)


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THE BANK COMPANIES ACT, 1991

1. Short Title: The Bank Companies Act, 1991

2. Application of other Laws not Barred

3. Limited Application of the Act to Co-Operative Banks

5. Definition: Financial Institutions/ /Company/ScheduledBank/ New Bank/ Specialized Bank/ Banking

Company/Banking

7. Business of Banking Companies


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10. Disposal of non-banking assets

No banking company shall hold any

immovable property for anyperiod exceeding 7 years

BB may extend the aforesaid 5 years

12. Restriction on removal of records anddocuments

13. Requirement as to minimum paid- up

capital and reserve

Taka four hundred crore or10% of RWA whichever

is higher

BB may alter the conditions in consultation with

the government


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14. Regulation of paid-up capital, subscribed capital

and authorized capital and voting rights of share

holders.

14 A. Restriction on buying shares of banks, Etc.

Not more than 10% share of a bank to be

centralized

Submission of oath or declaration

15. Election of new directors

BB may require any banking company( other

thannew or specialized) to call a general meeting of

the share-holders

The election shall not be called in question in any

court

Role of BB in the appointment of Adviser, CEO


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15 A. Filling of the post of chief executive officer

The post of CEO shall not be kept vacant fora consecutive period of more than 3 months

BB may appoint an Administrator and the

company shall bear the expenses

15AA. Restrictions regarding tenure of office of

director

Not more than six years consecutively intwo terms( Except CEO)

In special case a director can hold the office

for three consecutive terms


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17. Vacation of office of Director

Failing to repay any advance or loan

Failing to repay any amount due or anyguarantee given by him

Failing to perform any act agreed to or

undertaken in writing to be done by him

18. Certain privileges of directors

Directors will not receive any financial

benefit other than fees for attending

meetings of the board of directors


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Where any director of a banking company

execute any business transaction other than banking

business with any business establishment where heis associated or he has at least 10 percent share,

the banking company shall submit a report on that in

its general meeting

22. Restriction as to payment of dividend

Without writing of all capitalized

expenses Shortfall in required paid-up capital and

reserve

Some exceptions


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23. Prohibition of common Directors

A Director of any other banking company or financial

institution not engaged in banking business An external auditor, legal adviser or otherwise engaged

in any responsibility of profit of the banking company

A director of companies having voting rights in excess of

20 % of the banking company

24. Reserve fund

Transfer of at least 20 % profit to the reserve fund

Reporting to the BB for appropriation within 21 days BB may extend the period

27. Restrictions on loans and advances

Loans or advances against the security of its own share


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Grant unsecured loans to any of its Directors/

family members

Any firm in which the banking company or any ofthe persons referred to earlier has got interest in

the company

27AA. List of defaulted borrower

Sending list of defaulted borrowers to the BB

BB shall send the list to all banking companies

No banking company shall provide any credit

facility to any defaulted borrower

The lending banking company shall file suit

against the defaulted borrower according to

law in force


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29. Power of BB to control advances by banking

companies

BB may determine the lending policy to be

followed by the Banking companies

BB may give directions to banking companies

in the following matters:

Credit ceilings to be maintained

The minimum ratio of small loans to the total

advancesThe purpose of loan

The rate of interest to be charged on advances


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34. Assets in Bangladesh

35. Unclaimed Deposits and Valuable articles

38. Accounts and Balance Sheet

39. Audit

B/S and P/L account shall be audited by

a person duly qualified under theBangladesh Chartered Accounting Order, 1973


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The duties and liabilities in line with the

Companies Act.

In addition to thatAccuracy of Profit/ Loss

Following general accounting procedure

Adequacy of provision

39 B. Auditors to be declared disqualified


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44. Inspection by the Bangladesh Bank

45. Power of BB to give directions

46. Power of BB to remove directors from

office

57. Punishment for certain activities in relation

to banking companies


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THANK YOU ALL

BANK COMPANY ACT.ppt

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