Section 17 and 18 deals with vacation of the director office and certain benefit of the director
Section -17: Vacation of the office of Director.
a) If any director of a banking company fails to repay/adjust bank’s loans in time then the concerned banking company may serve notice to the defaulting director through the Bangladesh Bank for full adjustment of the defaulted bank’s loans within a specific period. If such failure of repayment continues for a period of two months even after Bangladesh Bank’s Notice, the post of director shall be fallen vacant with the expiry of the period cited in the Notice.
b) Any person receiving a Notice from concerned bank through Bangladesh Bank may explain his position to the Bangladesh Bank within thirty one days from the date of receipt of such notice with a copy of the explanation to the concerned banking company. The Bangladesh Bank shall give reply of the explanation within 15 days from the date of receipt of the explanation and the decision of the Bangladesh Bank in this regard shall be final.
Section -18: Certain benefits of the directors
any director of any banking company shall not accept pecuniary benefit other than honorarium for attending the meeting of the Bank’s Board of Directors. The amount of honorarium may be determined by the Board of Directors unanimously.
Section 19, 22, 27, 28 and 32 deals with certain restriction:
Section -19: Restriction on commission, brokerage, discount etc.
No banking company shall pay out directly or indirectly as commission, brokerage, discount or remuneration by any means in respect of any share issued by it, any amount not exceeding two and one-half percent of the paid-up capital of the said shares.
Section -22: Restrictions regarding payment of dividend
a) No banking company shall pay any dividend on its shares if all its capitalized expenses and other expenses have not been completely written off; or
b) If it fails maintain paid-up capital and reserve fund as per requirements of section – 13.
c) If there is provision shortfall.
Section -27: Restrictions on loans and advances, no Banking company shall
a) make any loans or advances against the security of its own shares
b) grant unsecured loans & advances
Section – 28: Restriction concerning to remission of debts
According to this section without the permission of Bangladesh bank no banking company can remit any debts of its director. Here director means (family and any dependents of him)
Section -32: Open a branch in a new place of business
No banking company shall open a new branch in a new place or change the location of an existing branch without obtaining prior permission of Bangladesh Bank.
Section –27 Ka Ka: List of Defaulting Borrowers
The Banking companies is allowed to send the list of defaulting borrowers to the Bangladesh Bank from time to time.
Section – 29: Power of Bangladesh Bank to control the giving of advance
Bangladesh Bank may give directions to the banking company regarding the advances
a) the upper limit of the loan to be given;
b) the ratio to be maintained between the total amount of an advance and loans of little amount or of other kind;
c) the purposes for which advances may or may not be given;
d) the upper limit of advances to be given to any banking company or any group of banking companies or person or assembly of persons;
e) the limit of interests on secured advances and advances; and
f) the rate of interest to be charged on advances.
Section -31: License of Banking Companies
No banking company shall carry out banking business in Bangladesh without obtaining a license from Bangladesh Bank.