Comment by Lucas : “I often post not all that I’ve read or seen or just only post in my Facebook group Lucas2012infos. As my Facebook post is copied today all over I will post this article myself on my blog. It is about the 33 directors that resigned simultaneously in Bangladesh. The issue is about the new insurance act of the country from 2010 that states a director can not be at the same time a bank director and a director of a non-bank institution in this case insurance firm. I posted the article not only for the resignations but also to make the point that countries wake up to conflict of interest or possibilities to be fraudulent when having multiple positions. Now follows the article beneath the line.”
The insurance regulator Wednesday said a total of 33 insurance company directors have resigned from the board of directors of banks, non-banking financial institutions (NBFIs) and their own companies.
They have retaining only one directorship, complying with provisions of Insurance Act of 2010.
February 29 was the last day to resign voluntarily from multiple directorship at the institutions, Insurance Development and Regulatory Authority (IDRA) said.
Earlier, IDRA set the deadline for February 29 to resign from simultaneous directorship from banks, NBFIs and insurers.
However, National Life Insurance Company in a letter to the regulatory body informed that they have 13 directors with multiple directorship.
None of the directors belonging to the said insurer resigned until the last day.
IDRA officials said it would start a removal process for those who have simultaneous directorship in insurance companies, FIs and banks. The regulator would take the removal measure under Sections 50 and 134 of Insurance Act of 2010.
According to IDRA sources, there are around 100 simultaneous directorship in the country’s three key financial sectors.
IDRA officials said Umme Kulsum Mannan has resigned from Sunflower Life Insurance Company and retained directorship at Bangladesh Industrial Finance Company Limited (BIFC).
Major (retd) Abdul Mannan, Alhaj AKM Mohiuddin and Md Rois Uddin have resigned from the Sunflower Life Insurance Company.
Rokeya Ferodous has resigned from BIFC and retained directorship at Sunflower.
Two directors — Nazmul Ahsan Khaled and Asif Rahman — have resigned from Popular Life Insurance Company.
One Popular Life Insurance director Golam Faruque Ahmad, is under coma in Singapore, and has failed to resign due to his physical condition, IDRA sources said.
Engineer MA Rashid, a director of Popular Life Insurance, has resigned from Union Capital Limited.
AK Azad, who has simultaneous directorships in Shahjalal Bank and Sonar Bangla Insurance Company, has resigned from Sonar Bangla Insurance company.
Four directors of Peoples Insurance Company Limited — Nazmul Ahsan Khaled, Md Iqbal Hossain, Md Forhad Ahmad Akahnd and Asif Rahman — have resigned from the insurance company.
Engineer MA Rashid, who was also a director of Peoples Insurance, has resigned from Union Capital.
ASM Nayeem has resigned from Republic Insurance Company.
Mosarrof Hossain and Mosfek Mamun Rizvi have resigned from Desh General Insurance Company.
Manzurur Rahman, a director of Delta Life Insurance, has resigned from Pubali Bank Limited.
Three directors of Delta Life — Md Sydul Islam, Dr Syeda Mokarrom Ali and Nurul Huda — have expressed their willingness to resign from Delta Brac Housing.
The three directors in separate letters to IDRA said their intention to resign will come into effect immediately.
Salim Ahmad, Ragib Ali and ASM Shahidullah Khan have resigned from Bangladesh General Insurance Company.
Engineer Khondker Mesbahuddin Ahmed and Tofazzol Hossian have resigned from Takaful Insurance Company.
Abdul Matlub Ahmad, Selima Ahmad and Abdul Musabbir Ahmad of Nitol Insurance Company Limited have resigned from the insurer.
Besides, Geasuddin Ahmad, a director of City General Insurance Company Limited, has resigned from the insurer, and Taslima Akter, a director of Eastland Insurance Company Limited, has resigned from the board of Social Islami Bank Limited.
The IDRA issued a circular in line with the Insurance Act of 2010 that bars an individual from becoming the director of a bank, a financial institution or an insurance company at a time.
IDRA on January 27 ordered insurers to remove from their boards the directors, who were simultaneously holding directorship at banks, insurance companies and other financial institutions, within February 29, retaining just one.