BB prohibits virtual board meetings for financial institutions

Bangladesh Bank has instructed non-banking financial institutions to cease holding board and subsidiary committee meetings virtually, emphasizing physical presence to ensure efficient use of electricity and energy. The central bank's Financial Institutions and Markets Department issued this directive on Tuesday.

Meetings will now be held in a hybrid manner, balancing the importance of in-person attendance for effective decision-making with the need for energy conservation. The new directive cancels previous guidelines, mandating that directors be physically present to ensure the smooth functioning of organizations.

However, foreign directors of non-domestic finance companies may continue participating in meetings virtually. This regulation, effective immediately, is enforced under Section 41 of the Finance Companies Act, 2023.