Sei sulla pagina 1di 48

ActNO.

14of1991

AnActmadetomakeprovisionsforbankingcompanies

WhereasitisexpedienttomakeprovisionsforbankingcompaniesthereforethefollowingActisherebypassed:

ChapterI

Preliminary

/1.Shorttitle.(1)ThisActmaybecalledtheBankingCompaniesAct,1991.
(2)Itshallbedeemedtohavecomeintoforceon14thFebruary1991.

2.ApplicationofotherActs.TheprovisionsofthisActshallbeinadditionto,andnot,saveashereinafter
expresslyprovided,inderogationof,theCompaniesAct,1913(VIIof1913),andanyotherActforthetime
beinginforce.

3.LimitedapplicationofthisActtocooperativebanksandotherfinancialinstitutions.NothinginthisAct
shallapplytoacooperativebankoranyotherfinancialinstitutionregisteredundertheCooperativeSocieties
Ordinance,1985(Iof1985)oranyotherActforthetimebeinginforcerelatingtocooperativebanks:

ProvidedthattheBangladeshBankmaycarryoutinspectionsofandissuedirectionstocooperativebanksas
prescribedforbankingcompaniesundersection44and45ofthisAct.

4.PowertosuspendoperationofthisAct.(1)TheGovernmentif,onarepresentationmadebythe
BangladeshBankinthisbehalfitissatisfiedthatitisexpedientsotodo,maybynotificationintheofficial
Gazettesuspendforatmost60daystheoperationofalloranyoftheprovisionsofthisActinrelationtoany
specifiedbankingcompany.
(2)TheGovernmentmay,bynotificationintheofficialGazette,extendfromtimetotime,theperiodofany
suspensionundersubsection(1)forsuchperiodorperiods,notexceeding60daysatonetime,asitthinksfit,so
howeverthatthetotalperioddoesnotexceedoneyear.
(3)Notificationsissuedunderthissectionshallbesubmittedtothenationalparliamentasfollows:

a)ifitisinsession,within10daysoftheissueofthenotification,and
b)ifitisnotinsession,within10daysofthebeginningofthesessionfollowingtheissueofthe
notification.

5.Definitions.InthisAct,unlessthereisanythingrepugnentinthesubjectorcontext,

a)"approvedsecurities"meanssecuritiesinwhichatrusteemayinvestmoneyunderclause(a),
clause(b),clause(bb),clause(c)orclause(d)ofSection20oftheTrustAct,1881(IIof1882)and
forthepurposeofsection13(3)includessuchsecuritiesastheGovernmentmay,bynotificationin
theofficialGazette,declaretobeapprovedsecuritiesforthepurposeofthissection.
b)"company"meansanycompanywhichmaybewoundupundertheCompaniesAct
c)"CompaniesAct"meansCompaniesAct1913(VIIof1913)
d)"demandliabilities"meansliabilitieswhichmustbemetondemand
e)"securedloanoradvance"meansaloanoradvancemadeonthesecurityofassetsthemarket
valueofwhichisnotatanytimelessthantheamountofsuchloanoradvance,and"unsecuredloan
oradvance"meansaloanoradvancenotsosecured,orthatpartofitwhichisnotsosecured
f)"scheduledbank"hasthesamemeaningasintheBangladeshBankOrder(P.O.NO.127of
1972)Article2(j)
g)"debtor"means

1)anyperson,companyororganisationacceptingdepositsofmoneyonthebasisof
sharedwinandloss,or
2)anyperson,companyororganisationtakingadvantageoffinancialopportunitieson
thebasisofsharedwinandloss,purchaseorleaseonrent,orinanyotherway

h)"newbank"meansanybankdenominatedintheBangladeshBanks(Nationalisation)Order,1972
(P.O.No.26of1972)
i)"creditor"means

1)anyperson,companyororganisationacceptingdepositsofmoneyonthebasisof
sharedwinandloss,or
2)anycompanyorfinancialorganisationgrantingfinancialopportunitiesonthebasis
ofsharedwinandloss,purchaseorleaseonrent,orinanyotherway

j)"privatecompany"hasthesamemeaningasintheCompaniesAct
k)"BangladeshBank"meansBangladeshBankestablishedundertheBangladeshBankOrder,1972
(P.O.No.127of1972)
l)"rule"meansarulemadeunderthisAct
m)"specialbank"meansanybankestablishedorformedbyorunderanyActinforceforthetime
beingandincludessuchbanksastheGovernmentmay,bynotificationintheofficialGazette,
declarespecialbanksforthepurposeofthisAct
n)"managingdirector"means

1)inrelationtoanewbank,amanagingdirectorasdefinedintheBangladeshBank
(Nationalisation)Order,1972(P.O.No.of1972)
2)inrelationtoaspecialbank,amanagingdirectorasdefinedintheActorthe
documentshavingtheforceofanAct,underwhichthesaidbankhasbeenestablished
orformed
3)inrelationtoanyotherbankingcompany,adirectorwho,byvirtueofanagreement
withthebankingcompanyorofaresolutionpassedbythebankingcompanyingeneral
meetingorbyitsBoardofDirectorsorbyvirtueofitsmemorandumorarticlesof
association,isentrustedwiththemanagementofthebankingcompany,andincludesa
directoroccupyingthepositionofamanagingdirector,bywhatevernamecalled

o)"bankingcompany"meansanycompanytransactingthebusinessofbankinginBangladesh,and
includesallnewbanksandspecialbanks
Explanation.Anycompanywhichismainlyengagedinthemanufactureofgoodsorcarrieson
anytradeandwhichacceptsdepositsofmoneyfromthepublicmerelyforthepurposeoffinancing
itsbusinessassuchmanufacturerortradershallnotbedeemedtotransactthebusinessofbanking
withinthemeaningofthisclause.
p)"banking"meanstheaccepting,forthepurposeoflendingorinvestment,ofdepositsofmoney
fromthepublic,repayableondemandorotherwise,andwithdrawablebycheque,draft,orderor
otherwise
qu)"temporaryliability"meansanyliabilityotherthandemandliability
r)"gold"meansgoldintheformofcoin,whetherlegaltenderornot,orintheformofbullionor
ingot,whetherrefinedornot
s)"register"shallhavethesamemeaningasintheCompaniesAct.
6.Acttooverridearticles,memorandum,etc..SaveasotherwiseexpresslyprovidedinthisAct,
a)exceptnewbanksandspecialbanks,theprovisionsofthisActshallhaveeffectnotwithstandinganythingto
thecontrarycontainedinthememorandumorarticlesofabankingcompany,orinanyagreementexecutedbyit,
orinanyresolutionpassedbythebankingcompanyingeneralmeetingorbyitsBoardofDirectors,wetherthe
sameberegistered,executedorpassed,asthecasemaybe,beforeorafterthecommencementofthisAct,and
b)anyprovisioncontainedinthememorandum,articles,agreementorresolutionaforesaidshall,totheextentto
whichitisrepugnanttotheprovisionsofthisAct,bevoid.

ChapterII

BusinessofBankingCompanies

7.BusinessofBankingCompanies.(1)Inadditiontothebusinessofbanking,abankingcompanymay
engageinalloranyofthefollowingformsofbusiness,namely:

a)theborrowing,raisingortakingupofmoney
b)thelendingoradvancingofmoneyeitheruponorwithoutsecurity
c)thedrawing,making,accepting,discounting,buying,selling,collectinganddealinginbillsof
exchange,hoondees,promissorynotes,coupons,drafts,billsoflading,railwayreceipts,warrants,
debentures,certificates,participationtermcertificates,termfinancecertificates,musharika
certificates,modarekacertificates,suchotherinstrumentsasmaybeapprovedbytheBangladesh
Bank,andsuchotherinstrumentsandsecuritieswhethertransferableornegotiableornot
d)thegrantingandissuingoflettersofcredit,traveller'schecks,andcircularnotes
e)thebuying,sellinganddealingingoldandsilvercoinsandcoinsofothermetals
f)thebuyingandsellingofforeignexchangeincludingforeignbanknotes
g)theacquiring,holding,issuingoncommission,underwritinganddealinginstocks,funds,shares,
debenturestock,obligations,participationtermcertificates,termfinancecertificates,musharika
certificates,modarekacertificatesandsuchotherinstrumentsandinvestmentsofanykindasmay
beapprovedbytheBangladeshBank
h)thepurchasingandsellingofbonds,scripsorotherformsofsecurities,participationterm
certificates,termfinancecertificates,musharikacertificates,modarekacertificatesand,onbehalfof
theconstituentsoftheBangladeshBankorothers,suchotherinstrumentsasmaybeapprovedby
theBangladeshBank
i)thenegotiatingofloansandadvances
j)thereceivingofallkindsofbondsorothervaluablesondepositorforsafecustodyorotherwise
k)providingvaultsforthesafetyofthedeposits
l)thecollectingandtransmittingofmoneyagainstsecurities
m)actingasagentsfortheGovernment,localauthoritiesoranyotherperson
n)thecarryingonofagencybusinessofanydescriptionincludingtheclearingandforwardingof
goodsandactingasalawagentonbehalfofcustomers,butexcludingthebusinessofamanaging
agentortreasurerofacompany
o)contractingforpublicandprivateloansandnegotiatingandissuingthesame
p)theeffecting,insuringandunderwritingofshares,stocks,debentures,debenturestockofany
company,corporationorassociationandthelendingofmoneyforthepurposeofanysuchissue
qu)thecarryingonandtransactingofeverykindofguaranteeandindemnitybusiness
r)thebuyingandacquiringofanykindofpropertyincludingmerchandise,patents,designs,
trademarksandcopyrights,inadditionto,atthenormalbusinessperiodofabank,suchorsimilar
transactionsas

1)repurchasebytheseller,or
2)sellinginthewaycalledpurchaseonrent,or
3)repaymentofoutstandingrates,or
4)leases,or
5)sharingoutofrevenues,or
6)financinginanyotherway

s)bringingintopossessionanypropertywhichmaysatisfyorpartlysatisfyanyoftheclaimsofthe
bankingcompanyandthemanagingandborrowingofsuchproperty
t)acquiring,holdingandmanagingofanypropertyoranyright,titleorinterestinanysuchproperty
whichmayformthesecurityorpartofthesecurityforanyloansoradvancesorwhichmaybe
connectedwithanysuchsecurity
u)undertakingandexecutingtrusts
v)undertakingtheadministrationofmovableandimmovablepropertyasexecutor,trusteeor
otherwise
w)forthebenefitofemployeesorexemployeesofthebankingcompanyorthedependantsand
connectionsofsuchpersons

1)establishingandsupporting,oraidingintheestablishmentandsupportof
associations,institutions,funds,trustsoranyotherestablishment
2)grantingpensionsandallowances
3)makingpaymentstowardinsurance
4)subscribingtoanyexhibitionoranyobjectgenerallyuseful
5)guaranteeingmoneyforallthesepurposes.

x)theacquisition,construction,maintenanceandalterationofanybuildingorworksnecessaryor
convenientforthepurposeofthebankingcompany
y)selling,improving,managing,exchanging,leasing,mortgagingorotherwisetransferringor
turningintoacountorotherwisedisposingofalloranypartofthepropertyorrightsofthebanking
company
z)acquiringandundertakingthewholeoranypartofthebusinessofanypersonorcompany,when
suchbusinessisofanatureenumeratedordescribedinthissubsection
aa)doingallsuchotherthingsasareincidentalorconducivetothepromotionoradvancementof
thebusinessofthecompany
ab)anyotherformofbusinesswhichtheGovernmentmay,bynotificationintheofficialGazette,
specifyasaformofbusinessinwhichitislawfulforabankingcompanytoengage.

(2)Nobankingcompanyshallengageinanyformofbusinessotherthanthosereferredtoinsubsection(1).

8.UseoftheWord"Bank"oranyofitsderivatives.Everycompanycarryingonthebusinessofbankingin
Bangladeshshallusetheword"bank"oranyofitsderivativesaspartofitsnameandnocompanyotherthana
bankingcompanyshalluseinitsnameanywordcalculatedtoindicatethatitisabankingcompany:

Providedthatnothinginthissectionshallapplyto

a)anysubsidiarycompanyofabankingcompanyformedforoneormoreofthepurposes
mentionedinsubsection(1)ofsection26
b)anyassociationofbanksformedfortheprotectionoftheirmutualinterestandregisteredunder
section26oftheCompanyAct.
ProvidedfurtherthattheGovernmentmay,bynotificationintheofficialGazette,andsubjecttotheconditions
determinedtherein,granttherighttousetheword"bank"oranyofitsderivativesaspartofitsnametoany
companycompletelyorpartlyownedorcontroledbytheBangladeshBank,includingnonbankingcompanies.

9.Prohibitionofcertainformsoftrading.Nobankingcompanyshalldirectlyorindirectlydealinthe
buying,sellingorbarteringofgoods,exceptinconnectionwiththerealisationofsecuritygiventoorheldbyit,
ororengageinanytradeorbuy,sellorbartergoodsforothersotherwisethaninconnectionwithbillsof
exchangereceivedforcollectionornegotiationorwithsuchofitsbusinessasisapprovedundersection7.

Explanation.Forthepurposeofthissection,"goods"meanseverykindofmovableproperty,otherthan
actionableclaims,stocks,shares,money,bullionandspecies,andallinstrumentsreferredtoinclause(c),(d),
(g),(h)ofsubsection(1)ofsection7.
10.Disposalofnonbankingassets.(1)Notwithstandinganythingcontainedinsection7,nobankingcompany
shallholdanyimmovablepropertyhowsoeveracquired,exceptsuchasisrequiredforitsownuse,forany
periodexceeding7yearsfromtheacquisitionthereoforfromthecommencementofthisAct,whicheverislater.
(2)Notwithstandinganythingcontainedinsubsection(1),theBangladeshBankmayextendtheperiod
mentionedinsubsection(1)byaperiodnotexceeding5yearswhereitissatisfiedthatsuchextensionwouldbe
intheinterestofthedepositorsofthebankingcompany.
(3)Forthepurposeofthissection,propertyasubstantialportionofwhichisusedbyabankingcompanyforits
owngenuinerequirementsshallbedeemedtobepropertyforitsownuse.

11.Prohibitionofemploymentofmanagingagentsandrestrictionsoncertainformsofemployment.(1)
Nobankingcompany

a)shallemployorbemanagedbyamanagingagentor
b)shallemployorcontinuetheemploymentofanyperson

i)whois,oratanytimehasbeen,adjudicatedinsolvent,orhassuspendedpayment,or
hascompoundedwithhiscreditors,orwhohasbeenconvictedbyacriminalcourtof
anoffenceinvolvingmoralturpitude
ii)whoseremunerationorpartofwhoseremunerationtakestheformofcommissionor
ofashareintheprofitofthecompany:
Providedthatnothingcontainedinsubclause(ii)shallapplytothefollowing
commissionsandbonusesgivenbyabankingcompany,namely
a)anybonusgiveninpursuanceofasettlementorawardarrivedatormadeunderany
lawrelatingtoindustrialdisputesorinaccordancewithanyschemeframedbya
concernedbankingcompanyorinaccordancewiththeusualpracticeprevailinginthe
bankingbusinessor
b)anycommissiongiventoanybroker(includingguaranteebroker),cashier,
contractor,clearingandforwardingagent,auctioneeroranyotherpersonemployedby
thebankingcompanyunderacontractotherwisethanasaregularmemberofthestaff
ofthecompanyor
iii)whoseremunerationisexcessiveintheviewoftheBangladeshBank.

Explanation1.Forthepurposeofthissubclause"remuneration"shallincludewages,feesandadvantagesin
additiontothewagesgivenbyabankingcompanytowhateverperson,butnotmoneyorallowancesgivenin
ordertomeettheexpensesarisingnormallyfromthefulfilmentofone'sduties.
Explanation2.ForthepurposeofthissubclausetheBangladeshBankmay,inordertodecidewhethera
remunerationisexcessiveornot,takeintoconsiderationthefollowingitems,namely:

a)thefinancialsolvencyofthebankingcompany,theextensionofitsactivities,thesizeofits
businessandthegeneraltendencyofitsearningcapacity
b)thenumberofitsbranchesandoffices
c)thecompetency,ageandexperienceofthepersonreceivingtheremuneration
d)theamountoftheremunerationgiventoanyotherpersonemployedinthebankingcompanyor
topersonsemployedinsimilarpositionsinotherbankingcompaniesinaboutthesamecondition
e)theinterestofitsdepositors

c)shallbemanagedbyanyperson

i)whoisadirectorofanyothercompanynotbeingasubsidiarycompanyofthesaid
bankingcompanyoracompanyregisteredundersection26oftheCompaniesAct,
exceptwiththepreviousapprovaloftheBangladeshBankor
ii)whoisengagedinanyotherbusinessorvocationor
iii)whohadacontractwiththecompanyforaperiodexceedingfiveyearsatanyone
time:
Providedthatanycontractwiththecompanyforitsmanagementmayberenewedor
extendedforafurtherperiodnotextendingfiveyearsatatimeifthedirectorsofthe
companysodecide:
Providedfurtherthatnothinginthisclauseshallapplytoadirector,otherthanthe
managingdirector,ofabankingcompanybyreasonsonlyofhisbeingadirector.

(2)Whereapersonholdingtheofficeofachairman,director,managerorchiefexecutiveofficer,bywhatever
namecalled,ofabankingcompanyisfoundbyanycourtortribunalorotherauthoritytohavecontravenedthe
provisionofanylawandtheBangladeshBankissatisfiedthatthecontraventionisofsuchanaturethatthe
associationofsuchpersonwiththebankingcompanywillbedetrimentaltotheinterestsofthebanking
companyoritsdepositorsorotherwiseundesirable,theBangladeshBankmaymakeanorderthatthatperson
shallceasetoholdtheofficewitheffectfromsuchdateasmaybespecifiedthereinandthereuponhisoffice
shall,witheffectfromthesaiddate,becomevacant.
(3)Anyordermadeundersubsection(2)mayprovidethatthesaidpersonshallnot,withoutthepermissionof
theBangladeshBank,inanyway,directlyorindirectly,beconcernedwith,ortakepartinthemanagementof
thebankingcompanyoranyotherbankingcompanyforsuchperiod,notexceedingfiveyears,asmaybe
specifiedintheorder.
(4)Noorderundersubsection(2)shallbemadeunlesstheconcernedpersonhasbeengivenopportunityof
makingarepresentationtotheBangladeshBankagainsttheproposedorder:
Providedthatitshallnotbenecessarytogiveanysuchopportunityif,intheopinionoftheBangladeshBank,
anydelaywouldbedetrimentaltotheinterestsofthebankingcompanyoritsdepositors.
(5)AnydecisionororderoftheBangladeshBankmadeunderthissectionshallbefinal.

12.Restrictionsonremovalofrecordsanddocuments.Nobankingcompanyshallremovefromitshead
officeoranyofitsbranches,whethertheyareatthetimebeingfunctioningornot,anyofitsrecordsor
documentsrelatingtoitsbusinesstoaplaceoutsideBangladesh,withoutthepriorpermissioninwritingofthe
BangladeshBank.
Explanation.Inthissection

a)theterm"records"meansanyelectronicallyorotherwisepreservedledger,daybook,cashbook,
accountbookandallotherbooksusedinthebusinessofabankingcompanyand
b)theterm"document"meansanyelectronicallyorotherwisepreservedvoucher,cheque,bill,pay
order,securityforanadvanceandanyotherdocumentsupportingentriesinthebooksof,orclaims
byoragainst,abankingcompany.

13.Minimumpaidupcapitalandreserves.(1)Unlessithaspaidupcapitalandreservesofsuchaggregate
valueasisrequiredbythissection,

a)nobankingcompanyinexistenceonthecommencementofthisActshall,aftertheexpiryoftwo
yearsfromsuchcommencement,ifitisincorporatedinBangladeshandofsixmonths,ifitis
incorporatedoutsideBangladesh,carryonbusinessinBangladeshand
b)nootherbankingcompany,exceptthebankingcompaniesmentionedinclausea),shall
commenceitsbusinessafterthecommencementofthisAct:
ProvidedthattheBangladeshBankmay,ifitthinksfitinanyparticularcase,extendtheperiod
referredtointhissubsectionbyafurtherperiodnotexceedingoneyearinthecaseofbanking
companiesincorporatedinBangladeshandsixmonthsinthecaseofbankingcompanies
incorporatedoutsideBangladesh.

(2)Inthecaseofnewbanksandspecialbankstheamountofthepaidupcapitalandreservesshallnotbeless
thantheamountdeterminedinorundertheActunderwhichthesaidbankshavebeenestablished,oranamount
representing6percent.ofthetotaldemandandtimeliabilitiesofsuchcompanyatthecloseofthelastworking
dayofthepreviousfinancialyear,whicheverishigher:
ProvidedthattheBangladeshBankmay,bynotificationintheofficialGazette,foranysuchbankchangethe
conditionsregardingtheamountofthepaidupcapitalandreservesrequiredunderthissubsection:
ProvidedfurtherthatinthecaseofnewbanksandspecialbanksincompletedependenceoftheGovernment,the
Governmentmayprovideadditionalmoneyforthebenefitofsuchbanksthefairmarketvalueofwhoserevised
capitalandreserveshasfallenbelowthelowestlimit.
(3)Theamountofpaidupcapitalandreservesofallbanksexceptnewbanksandspecialbanksshallnotbeless
thanonehundertmillionTakas,oranamountrepresenting6percentofthetotaldemandandtimeliabilitiesof
suchcompanyatthecloseofthelastworkingdayofthepreviousfinancialyear,whicheverishigher.
ProvidedthattheBangladeshBankmay,bynotificationintheofficialGazetteafterconsultationwiththe
Government,foranybankchangetheconditionsregardingtheamountofthepaidupcapitalandreserves
requiredunderthissubsection.
(4)InthecaseofabankingcompanyincorporatedoutsideBangladeshtheamountofitspaidupcapitaland
reservesshallnotatthecloseofanyworkingdayofsuchcompanybelessthanonehundretmillionTakas,oran
amountrepresenting6percentofthetotaldemandandtimeliabilitiesofsuchcompanyinBangladeshatthe
closeofthelastworkingdayofthepreviousfinancialyear,whicheverishigher:
Providedthatnosuchbankingcompanyshallbedeemedtohavecompliedwiththeprovisionsofthissubsection
unlessitdepositswiththeBangladeshBanktheamountrequiredunderthissubsection,eitherincashorin
unencumberedapprovedsecuritiesorpartlyincashandpartlyinsuchsecuritiesoranyotherassetdetermined
bytheBangladeshBank:
ProvidedfurtherthatsuchadepositshallbemadebytransferoffundsfromoutsideBangladeshorintheform
ofassetsacquiredoutofremittableprofitsmadefromdepositsinBangladesh.
(5)AnyamountdepositedwiththeBangladeshBankundersubsection(4)byanybankingcompany
incorporatedoutsideBangladeshshall,intheeventofthecompanyceasingforanyreasontocarryonits
bankingbusinessinBangladesh,beanassetofthecompanyandtheclaimsofthecreditorsofthebankin
Bangladeshonthisamountshallbeafirstcharge.
(6)Ifanydisputearisesincomputingtheamountofthepaidupcapitalandreservesofanybankingcompany,
thedecisionoftheBangladeshBankthereuponshallbefinal.
(7)IftheBangladeshBankisconvincedthatanybankfailstopreservetheminimumrevisedcapitaland
reservesinaccordancewiththissection,thebankingcompanyconcernedshallbeforcedtopaysuchfineasmay
beprescribed.

14.Regulationofpaidupcapital,subscribedcapitalandauthorizedcapitalandvotingrightsofshare
holders.(1)NobankingcompanyincorporatedinBangladesh,exceptnewbanksandspecialbanks,shall
commenceitsbusinessinBangladsehunlessitsatisfiesthefollowingconditions,namely:

a)thatitssubscribedcapitalisnolessthanonehalfoftheauthorizedcapital
b)thatitspaidupcapitalisnolessthanonehalfofthesubscribedcapital
c)thatifthecapitalisincreaseditcomplieswiththeconditionsprescribedinclausea)andb)within
suchperiod,notexceedingtwoyears,astheBangladeshBankmaydetermine
d)thatitscapitalconsistsofordinarysharesonly
e)that,subjecttotheprovisionscontainedinclausef),thevotingrightsofanyofitsshareholders
areproportionatetothecontributionmadebyhimtothepaidupcapitalofthecompany
f)thatthevotingrightsofanyoneshareholder,exceptthoseoftheGovernment,donotexceedfive
percentofthetotalvotingrightsofalltheshareholders.
(2)Notwithstandinganythingcontainedinanylawforthetimebeinginforceorinanycontractorinstrument,
nosuitorotherproceedingshallbefiledagainstanypersonregisteredastheholderofashareinabanking
companyotherthananeworspecialbankonthegroundthatthetitletothesaidsharehasbeenvestedina
personotherthantheregisteredholder:
Providedthatnothingcontainedinthissubsectionshallapplyincasethatasuitorotherproceedingisfiledby
oneofthefollowingpersons,namely:

a)anypersonhavingobtainedthetransferofasharefromaregisteredshareholderinaccordance
withthelawsrelatingtothetransferofshares
b)anyotherpersonactingonbehalfofaminororlunaticpersononthegroundthatheholdsasthe
registeredholdertheshareonbehalfoftheminororlunatic.

(3)Everychairman,managingdirector,directororchiefexecutiveofficer,bywhatevernamecalled,andallof
hisfamilymembers,ofanybankingcompanyexceptnewandspecialbanksshalltransmittotheBangladesh
Bankthroughthatbankingcompanyaccountscontainingfullparticularsoftheextentandvalueofhisholdingof
shares,assetsandobligations,whetherdirectlyorindirectly,inthesaidbankingcompanyoranyothercompany
andofanychangeintheextentofsuchholdingoranyvariationintherightsanddutiesattachingtheretoand
suchotherinformationrelatingtothoseshares,assetsandobligationsastheBangladeshBankmay,byorder,
requireandinsuchformandatsuchtimeasmaybespecifiedbytheBangladeshBankintheorder.

15.Electionofnewdirectors.(1)TheBangladeshBankmay,byorder,requireanybankingcompanyexcept
newandspecialbankstocallageneralmeetingofthecompanywithintwomonthsfromthedateoftheorderor
withinsuchfurthertimeastheordermayallowinthisbehalf,toelectinaccordancewiththeprovisionsofthis
ordinancenewdirectors.
(2)Everydirectorelectedundersubsection(1)shallholdofficeuntilthedateuptowhichhispredecessorwould
haveheldoffice,iftheelectionhadnotbeenheld.
(3)Anyelectiondulyheldunderthissectionshallnotbecalledinquestioninanycourt.
(4)TheBangladeshBankmay,bygeneralorder,makeprovisionstotheeffectthatnobankingcompanyexcept
newandspecialbanksshallappointitsmanagingdirectorsorchiefexecutiveofficers,whateverbethenameof
theoffice,withoutthepreviousapprovaloftheBangladeshBankandnomanagingdirectororchiefexecutive
officerappointedinthiswayshallberemovedfromhisoffice,acquittedordismissedwithouttheprevious
approvaloftheBangladeshBank.

16.Restrictionontheperiodofofficeofdirectors.(1)Nopersonexceptthechiefexecutiveofficerofa
bankingcompany,bywhatevernamecalled,shallholdtheofficeofadirectorformorethansixyearsin
continuance.
Explanation.Inthissubsectionaperiodofsixyearsincontinuanceshallbeequivalenttoaintervalofnoless
thanthreeyears.
(2)Nopersonhavingholdanofficeforaperiodofsixyearswithoutcessationaccordingtosubsection(1)shall
beagaineligibleasdirectorunlessthreeyearshavepassedsincetheendofthesaidperiod.

17.Vacancyoftheofficeofadirector.(1)Ifanydirectorofanbankingcompanyfailsto

a)payadvancesorloansacceptedbyhimorinstalmentsorinterestsonthatadvancesorloans,or
b)paythemoneyheisboundtoforanysecurity,or
c)accomplishanydutytobeaccomplishedbyhimandtheresponsibilityforwhichhehastakenon
inwriting,

andthesaidbankingcompanygiveshimorderthroughanoticebytheBangladeshBanktopaythesaid
advances,loans,instalments,interestsormoneyortoaccomplishthesaiddutiesandhefailstoaccomplishthose
dutiesandpaymentswithintwomonthsafterreceiptoftheorder,inthatcasetheofficeofdirectorshallbe
vacantbeginningfromtheexpiryofthesaidterm.
(2)Whoeverhasreceivedanoticeundersubsection(1)may,withinthirtydaysafterreceiptofthenotice,send
hisstatementsonthesubjectinquestion,ifany,inwrittenformtotheBangladeshBank,andacopythereofto
thebankingcompanywhoissuedthenotice.
(3)ThedecisionoftheBangladeshBankonanystatementundersubsection(2)shallbefinal.

18.Somerulesconcerningbenefitsfordirectors.(1)NotwithstandinganythingcontainedinanyotherActor
memorandumofassociation,nobankingdirectorshalltakefromthebankanyfinancialorotherprivilegeexcept
theregularfeesforparticipationinthemeetingsoftheExecutiveBoardofthebankormoneydeterminedbythe
Boardfortheperformanceofanydutyconsideredimportantforthecommercialinterestofthebankandwhich,
therefore,hasbeenconferreduponhimbytheExecutiveBoardunanimously.
(2)Ifanydirectorofabankingcompanycarrieson,whilebeinginvolvedinthemanagementofanycommercial
institutionorholdingnolessthantenpercentofthatinstitutioninpossession,anybusinessotherthanthe
bankingbusinessofthebankingcompanywiththesaidinstitution,thenheshall,atthegeneralmeeting,present
adetailedreportthereoftothebankingcompany.

19.Restrictionsoncommissionofsaleofshares,brokerage,discountetc..Notwithstandinganythingtothe
contraryinsections105and105AoftheCompaniesAct,nobankingcompanyshallpayoutdirectlyor
indirectlybywayofcommission,brokerage,discountorremunerationorotherwiseinrespectofanyshares
issuedbyit,anyamountexceedingtwoandonehalfpercentofthepaidupvalueofthesaidshares.

20.Prohibitionofchargeonunpaidcapital.Nobankingcompanyshallcreateanychargeuponanyunpaid
capitalofthecompanyandanysuchcharge,ifcreated,shallbeinvalid.

21.Prohibitionoffloatingchargeonassets.(1)Notwithstandinganythingcontainedinsectionsevenno
bankingcompanyshallcreateafloatingchargeontheundertakingoranypropertyofthecompanyoranypart
thereof,unlessthecreationofsuchafloatingchargeiscertifiedinwritingbytheBangladeshBankasnotbeing
detrimentaltotheinterestsofthedepositorsofthebankingcompany.
(2)Anychargementionedinsubsection(1)shall,withoutthecertificateoftheBangladeshBank,beinvalid.
(3)Anybankingcompanyaggrievedbytherefusalofcertificateundersubsection(1)bytheBangladeshBank
may,withinninetydaysfromthedateonwhichsuchrefusaliscommunicatedtoit,appealtotheGovernment.
(4)ThedecisionoftheGovernmentwhereanappealhasbeenpreferedtoitundersubsection(3)orofthe
BangladeshBankwherenosuchappealhasbeenpreferredshallbefinal.

22.Restrictionsonthepaymentofdividends.(1)Nobankingcompanyexceptnewandspecialbanksshall
payanydividendonitsshares,unless

a)allitscapitalisedexpensesincludingpreliminaryexpenses,organisationexpenses,commission
forsharesellingandbrokerage,lossesandotheritemshavebeencompletelywrittenoff,or
b)itmanagestopreserveconstantlysixpercentofitstemporaryanddemanddepositsas
dischargedandreservedcapital.

(2)Notwithstandinganythingtothecontrarycontainedinsubsection(1)orintheCompaniesAct,anybanking
companymaypaydividendsonitsshareswithoutwritingoffunderthefollowingcircumstances:

a)inanycasewherethedepreciationofitsinvestmentsinapprovedsecuritieshasnotactuallybeen
capitalisedorotherwiseaccountedforasaloss,
b)inanycasewhereadequateprovisionforthedepreciationinthevalueofitsinvestmentsin
shares,debenturesorbonds(otherthanapprovedsecurities)hasbeenmadetothesatisfactionofthe
auditorofthebankingcompany,
c)inanycasewhereadequateprovisionforbaddebtshasbeenmadetothesatisfactionofthe
auditorofthebankingcompany.

23.Restrictionsontheemploymentofcommondirectors.(1)Nobankingcompanyincorporatedin
Bangladesh,exceptnewandspecialbanks,shallhave,withoutthepermissionoftheBangladeshBank,asa
directoranypersonwhois
a)adirectorofanyotherbankingcompany,oradirectorofaninstitutionlendingmoneywithout
beingengagedinthebusinessofbanking
b)adirectorofcompanieswhichareentitledtoexercisevotingrightsinexcessoftwentypercent
ofthetotalvotingrightsofalltheshareholdersofthebankingcompany:
Providedthattheprovisionsofthissubsectiondonotapplytodirectorsappointedbythe
Government.

(2)IfimmediatelybeforethecommencementofthisOrdinanceanypersonholdingofficeasadirectorofa
bankingcompanyisalsoadirectorofcompanieswhichareentitledtoexercisevotingrightsinexcessoftwenty
percentofthetotalvotingrightsofalltheshareholdersofthebankingcompany,heshall,fromsuch
commencementwithinsuchperiodastheBangladeshBankmayspecifyinthisbehalf

a)eitherresignhisofficeasadirectorofthebankingcompany,or
b)choosesuchcompaniesasarenot,onthestrengthoftheirsharesofthesaidbankingcompany,
entitledtoexercisevotingrightsinexcessoftwentypercentofthetotalvotingrightsofallthe
shareholdersofthebankingcompanyascompaniesinwhichhewishestocontinuetoholdthe
officeofadirectorandresignhisofficeasadirectorintheothercompanies.

24.ReserveFund.(1)EverybankingcompanyincorporatedinBangladeshshallcreateareservefundandif
theamountinsuchfundtogetherwiththeamountinthesharepremiumaccountisnotlessthanitspaidup
capitalortheamountofthepremiumsettledfromtimetotimeinthisbehalfforanybankingcompanybythe
BangladeshBank,shall,outoftheprofitasdisclosedintheprofitandlossaccountpreparedundersection38
andbeforeanymoneyistransferredtotheGovernmentordeclaredasprofit,transfertothereservefundasum
equivalenttonotlessthantwentypercentofthatprofit.
(2)Whereabankingcompanyappropriatesanymoneyfromthereservefundorthesharepremiumaccountfor
anypurpose,itshall,withintwentyonedaysfromthedateofsuchappropriation,reportthefacttothe
BangladeshBank:
ProvidedthattheBangladeshBankmayextendtheperiodforsuchreportorcondoneanydelayinthemakingof
suchreport.

25.CashReserve.(1)Everybankingcompany,notbeingascheduledbank,shallmaintaininBangladeshby
wayofcashreserveincashwithitself,orwiththeBangladeshBankoritsagent,orbothbanksinequalparts,a
sumequivalenttonotlessthanfivepercent.ofitstimeanddemandliabilities:
ProvidedthattheBangladeshBankmay,inanyparticularcase,change,bynotificationintheofficialGazette
andsubjecttotheconditionssettledthereininthisbehalf,therequirementsrelatingtothecashreserveorrepeal,
onpreviousapprovalbytheGovernment,suchrequirements.
Explanation.(1)Forthepurposeofthissection"liability"shallnotincludethepaidupcapitalorthecash
reservesorthecreditbalanceintheprofitandlossaccountofthebankingcompanyortheamountofanyloan
takenfromtheBangladeshBank.
(2)Everybankingcompany,notbeingascheduledbank,shall,iftheBangladeshBankrequiresanyinformation
regardingfundsreservedinaccordancewiththeprovisionsofsubsection(1),submitareportcontainingthat
informationandsignedbytwoofficersofthesaidcompanytotheBangladeshBank.
(3)Everybankingcompanyfailingtosubmitareportinaccordancewiththeprovisionsofsubsection(2)shall
bepunishablebytheBangladeshBankwithafineofnomorethan2500Takasforeverydayitfailssotodo.
(4)Ifareportsubmittedundersubsection(1)showsthatthebankingcompanywhichsubmittedthereport
maintainedanamountofcashlessthantheamountdeterminedundersubsection(1)atthecloseofanyworking
daypreceedingthesubmissionofthereport,theBangladeshBankmayorderthebankingcompanytopayitfor
thosedaysapenalinterestonthesaiddeficitexceedingbythreepercentthebankrate,andifasubsequent
reportshowsagainthatthesaidbankingcompanymaintainedanamountofcashlessthantheamount
determinedundersubsection(1)atthecloseofanyworkingdaypreceedingthedaydeterminedforthe
submission,theBangladeshBankmayorderthebankingcompanytopayitforthosedaysapenalinterestonthe
saiddeficitexceedingbyfivepercentthebankrate.
(5)Ifabankingcompanyhasbeenorderedonthebasisofareportsubmittedbyitselftopayapenalinterest
exceedingbyfivepercentthebankrateundersubsection(4)andifasubsequentreportshowsthatitmaintains
anamountofcashlessthantheamountdeterminedundersubsection(1),theBangladeshBankmayorderthe
saidbankingcompanynottoacceptnewdepositsfromsuchdateastheBangladeshBankmaydetermine,andif
thesaidbankingcompanyacceptsanydepositindisregardofthatorder,theBangladeshBankmayinflictafine
ofnomorethan5000Takasonitforeverydayitdoesso,tobepaidtotheBangladeshBank.
(6)AnyfineinflictedunderthissectionshallberealisedwithinsuchperiodastheBangladeshBankmay
determineandifithasnotbeenrealizedwithinthesaidperiod,itshallberecoverableaspublicdemand.

26.SubsidiaryCompanies.(1)Abankingcompanyshallnotformanysubsidiarycompanyexcepta
subsidiarycompanyformedforoneofthefollowingpurposes,namely:

a)theundertakingandexecutingoftrusts
b)theundertakingoftheadministrationofanypropertyasexecutor,trusteeorotherwise
c)theprovisionofsafevaultsinordertoprovideforthesecurityofthedeposits
d)theundertakingofthebusinessofbankinginaccordancewiththedirectionsoftheshariat
e)withthepreviouspermissioninwritingoftheBangladeshBank,

i)thecarryingonofthebusinessofbankingexclusivelyoutsideBangladesh
ii)thecarryingonofthebusinessofbankingonthebasisofdepositsreceivedfrom
nonresidentsinforeigncashandwhicharefreelytransferable

f)withthepreviouspermissionoftheGovernment,thepromotingofsuchbusinessasmay,inthe
opinionofthebankingcompany,helptoexpandanddevelopthebusinessofbankingin
Bangladesh,advancetheinterestsofthepoepleorbeusefulinanyotherway.

(2)Saveasprovidedinsubsection(1),nobankingcompanyshallholdsharesinanycompanywhetheras
pledgee,mortgageeorabsoluteownerofanamountexceedingthelesserofthefollowingamounts,namely:

a)thirtypercentofthetotalamountofthepaidupandreservecapitalofthesaidcompany,or
b)thirtypercentofthepaidupcapitalofthesaidcompany:

Providedthatnobankingcompanywhichis,onthedateofcommencementofthisAct,holdingsharesofan
amountexceedingtheamountapprovedbythissubsectionshallbeliabletoanypenaltytherefore,ifthesaid
bankingcompany

i)reportsthematterwithoutdelaytotheBangladeshBank,and
ii)reducestheamountofthesaidsharestotheamountapprovedbytheprovisionsof
thissubsectionwithinsuchperiod,notexceedingtwoyearsfromthecommencementof
thisAct,astheBangladeshBankmaydetermine.

(3)Notwihstandinganythingcontainedinsusection(2),nobankingcompanyshall,aftertheexpiryofoneyear
fromthedateofcommencementofthisAct,holdshares,whetheraspledgee,mortgageeorabsoluteowner,in
anycompanyinthemanagementofwhichanymanagingdirectorormanagerofthebankingcompanyis
concernedorinterested.

27.Restrictionsonloansandadvances.(1)Nobankingcompany

a)shallmakeanyloansoradvancesonthesecurityofitsownshares
b)shall,withoutsecurity,makeanyloanoradvancetoanyofthefollowingpersonsorinstitutions,
ormakeanyloanoradvanceincaseswherethosepersonsorinstitutionsareguarantors

i)anyofitsdirectors
ii)anymemberofthefamilyofanyofitsdirectors
iii)anycommercialinstitutionorprivatecompanyinwhichthebankingcompany
itself,oranyofitsdirectorsoranymemberofthefamilyofanyofitsdirectorsis
involvedasdirector,ownerorshareholder
iiii)anypubliclimitedcompanywhichisinsomewayorothercontroledbythe
companyitself,oranyofitsdirectorsoranymemberofthefamilyofanyofits
directors,orthesharesofwhichareheldbyanyofthesaidpersonstosuchanextentas
togiveitcontrolofnolessthantwentypercentofthevotingrights.

(2)Nobankingcompanyshallgivetoanyofthefollowingpersonsorinstitutionsanyloanoradvancewithout
theapprovalofthemajorityofthedirectors,excludingthedirectorconcerned,

a)anyofitsdirectorsor
b)anyperson,commercialinstitutionorcompanyinwhichanyofthedirectorsofthesaidbanking
companyisinterestedaspartner,directororguarantor.

Explanation.Forthepurposeofthissubsection"director"shallincludethedirector'swife,husband,father,
mother,sonanddaughter.
(3)Nobankingcompanyshall,withoutthepreviouspermissioninwritingoftheBangladeshBank,givetoany
personorinstitution,directlyorindirectly,anybenefittheaggregatevalueofwhichexceeds

a)15percentofthetotalcapitalofthesaidbankingcompanyor
b)25percentofthetotalcapitalofthesaidbankingcompanywherethesecurityofthesaid
benefitshasbeenprovidedbysuchfinancialsecuritiesasmightbeeasilyputonthemarketforsale.

Explanation.(1)"Benefit"shallmeananyloan,advanceoranyotherloanbenefit,orfinancialguarantiesor
anysuchobligationasanybankingcompanyhastakenoninbehalfofanypersonorinstitutionand
(2)"Totalcapital"shallmeanpaidupcapitalandreservefundincludingthosevariouskindsofsecuritywhich
areinaccordancewiththeprovisionsoftheBangladeshBankundersection(13),certificatesofindebtedness,
deposits,obligationsetc..

(4)Everybankingcompanyshall,beforethecloseofthemonthtowhichthereportrelates,submittothe
BangladeshBankareportintheprescribedformandmanner,andinthesaidreportthefollowingparticulars
shallbementioned

a)allloansandadvancesgrantedbyittocompanies,privateaswellaspublic,inwhichthebanking
companyoranyofitsdirectorsisinterestedasdirectorand
b)allloansandadvancesgrantedbyittopubliccompaniesinwhichthebankingcompanyoranyof
itsdirectorsisinterestedasmanagingagentorguarantor.

(5)Ifonexaminationofanyreportsubmittedundersubsection(4)itappearstotheBangladeshBankthatany
loansoradvancesreferredtointhatsubsectionhavebeengrantedtothedetrimentoftheinterestsofthe
depositorsofthebankingcompany,theBangladeshBankmay,byorderinwriting,prohibitthebanking
companyfromgrantinganysuchfurtherloansoradvancesorimposerestrictionsonthegrantingofsuchloans
oradvances,andmaydirectthebankingcompanytosecuretherepaymentofloansoradvancesgrantedinthis
waywithinsuchtimeasmaybespecifiedintheorder.

28.Restrictionsontherespiteofloans.(1)Nobankingcompanyshall,withoutthepreviousapprovalofthe
BangladeshBank,grantrespiteofloanstakenfromitbyanyofthefollowingpersonsorinstitutions,

a)anyofitsdirectors,andhisfamilymembers
b)acommercialinstitutionorcompanyinwhichanydirectorofthebankingcompanyisinterested
aslandowner,codirector,managingagentand
c)anysuchpersoninwhichanydirectorofthebankingcompanyisinterestedaspartneror
landowner.

(2)Anyrespiteofloansindisregardoftheprovisionsofsubsection(1)shallbeillegal,andwhoeveris
responsableforsucharespiteshallbepunishablewithimprisonmentfornomorethanthreeyearsorafineofno
morethanthirtythousandTakasorboth.
29.PoweroftheBangladeshBanktocontrolthegivingofadvances.(1)WhenevertheBangladeshBankis
satisfiedthatitisnecessaryorexpedientsotodo,itmaydeterminethepolicyinrelationtoadvancestobe
followedbybankingcompaniesgenerallyorbyanybankingcompanyinparticularandwhenthepolicyhas
beensodetermined,allbankingcompaniesorthebankingcompanyconcernedshallbeboundtofollowthe
policysodetermined.
(2)WithoutprejudicetothegeneralityofthepowervestedintheBangladeshBankundersubsection(1),the
BangladeshBankmaygivedirections,strictlytobecompliedwith,tobankingcompanieseithergenerallyorto
anybankingcompanyorgroupofbankingcompaniesinparticularwithregardtothefollowingitems,

a)theupperlimitoftheloantobegiven
b)theratiotobemaintainedbetweenthetotalamountofanadvanceandloansoflittleamountorof
otherkind
c)thepurposesforwhichadvancesmayormaynotbegiven
d)theupperlimitofadvancestobegiventoanybankingcompanyoranygroupofbanking
companiesorpersonorassemblyofpersons
e)thelimitofinterestsonsecuredadvancesandadvancesand
f)therateofinteresttobechargedonadvances.

(3)Wheneverabankingcompanyfailstocomplywithanydirectionreferringtoasubjectmentionedinclause
(a)and(b)ofsubsection(1),theBangladeshBankmayorderthatbankingcompanytodepositattheBangladesh
Banksuchamountofmoneyasthelattermaydetermineandthesaidbankingcompanyshallbebound
tocomplywithsuchdirectionsonsuchconditionsastheBangladeshBankmaydetermine:
ProvidedthattheBangladeshBankmaynotorderthesaidbankingcompanytodepositanyamountexceeding
theamountinregardofwhichthesaidfailuredidhappen.
(4)TheBangladeshBankmayatanydefinitetime,byanorderinwrittenform,releasethemoneyorpartofthe
moneydepositedattheBangladeshBankundersubsection(3)tothedepositingbankingcompanyonorwithout
anycondition.

30.JurisdictionofCourtsregardinginterestrates.NotwithstandinganyActforthetimebeinginforce,no
transactionbetweenabankingcompanyandanyofitsdebtorsshallbetriablebyaCourtonthemeregroundof
excessivenessoftheinterestratetakenbythebankingcompany.

31.Licensingofbankingcompanies.(1)Saveashereinafterprovided,nobankingcompanyshallcarryon
bankingbusinessinBangladeshwithoutalicenceissuedinthisbehalfbytheBangladeshBank.
(2)Wheneverissuingalicenceundersubsection(1),theBangladeshBankmayimposeanyconditionitthinks
fit.
(3)EverybankingCompanyinexistenceonthecommencementofthisOrdinance,beforetheexpiryofsix
monthfromsuchcommencement,andeveryothercompanybeforecommencingbankingbusinessin
Bangladesh,shallapplyinwritingtotheBangladeshBankforalicenceunderthissection
Providedthatnothinginsubsection(1)shallbedeemedtoprohibitabankingcompanyinexistenceonthe
commencementofthisActfromcarryingonbankingbusiness,if

a)itsapplicationunderthissectionisunderconsideration,or
b)ithasnot,bynotice,beeninformedbytheBangladeshBankthatalicencecannotbegrantedto
it

ProvidedfurtherthattheBangladeshBankshallnotgiveanoticeasaforesaidtoabankingcompanyin
existenceonthecommencementofthisActbeforetheexpiryoftheperiodoftwoyearsinthecaseofbanking
companiesincorporatedinBangladeshandofsixmonthinthecaseofbankingcompaniesincorporatedoutside
Bangladeshreferredtoinsubsection(1)ofsection13orofsuchfurtherperiodastheBangladeshBankmay
undertheprovisotothatsubsectionthinkfittoallow.
(4)Beforegrantinganylicenceunderthissection,theBangladeshBankmayrequiretobesatisfiedbyan
inspectionofthebooksofthebankingcompanyorotherwisethatalloranyofthefollowingconditionsare
fulfilled,namely:
a)thatthecompanyisorwillbeinapositiontopaytheclaimsofitspresentorfuturedepositorsin
full
b)thattheaffairsofthecompanyarenotbeingorarenotlikelytobeconductedinamanner
detrimentaltotheinterestsofitspresentorfuturedepositors
c)that,inthecaseofabankingcompanyincorporatedoutsideBangladesh,theGovernmentorlaw
ofthecountryinwhichitisincorporatedprovidesthesamefacilitiestothecompanyasthe
GovernmentorlawofBangladeshgrantstocompaniesincorporatedinBangladesh,andthatthe
companycomplieswithalltheprovisionsofthisActapplicabletocompaniesincorporatedoutside
Bangladesh.

(5)TheBangladeshBankmaycancelalicencegrantedtoabankingcompanyunderthissectiononaccountof
thefollowingreasons,namely:

a)ifthecompanyceasestocarryonbankingbusinessinBangladesh
b)ifthecompanyatanytimefailstocomplywithanyoftheconditionsimposeduponitunder
subsection(1)or
c)ifatanytimethatcompanyfailstofulfilanyoftheconditionsreferredtoinsubsection(4):

Providedthatbeforecancellingalicenceunderclauseb)andc),theBangladeshBank,unlessitisofopinion
thatthedelaywillbeprejudicialtotheinterestsofthecompany'sdepositorsorthepublic,shallgranttothe
companyonsuchtermsasitmayspecify,anopportunityoftakingthenecessarystepsforcomplyingwithor
fulfilmentoftheprovisionsofthoseclauses.
(6)Anybankingcompanyaggrievedbyadecisioncancellingalicenceunderthissectionmay,withinthirtydays
fromthedateonwhichthedecisionoftheBangladeshBankiscommuncatedtoit,appealtotheGovernment.
(7)ThedecisionoftheGovernmentwhereanappealhasbeenpreferredtoitundersubsection(6)orofthe
BangladeshBankwherenoappealhasbeenpreferredshallbefinal.

32.Restrictionsonopeningofnew,andtransferofexistingplacesofbusiness.(1)Withouttheprevious
permissioninwritingoftheBangladeshBank

a)nobankingcompanyshallopenanewplaceofbusinessinanypartofBangladeshorchangethe
locationofanexistingplaceofbusinessand
b)nobankingcompanyincorporatedinBangladeshshallopenanewplaceofbusinessoutside
BangladeshorchangethelocationofanexistingplaceofbusinessoutsideBangladesh.

(2)Theprovisionsofsubsection(1)shallnotapplytotheopeningforaperiodnotexceedingonemonthofnew
placesofbusinessforthepurposeofofferingbankservicestemporarilyontheoccasionofexhibitions,melas,
comferencesorotherlikeoccasions:
ProvidedthatinformationofsuchopeningisgiventotheBangladeshBankwithinoneweekofthedateof
opening.
(3)TheBangladeshBankmay,beforegivingthepermissionreferredtoinsubsection(1)toanybanking
company,requiretobesatisfiedbyaninspectionundersection44orotherwiseregardinganysubjectofthat
bankingcompany.

33.Maintenanceofliquidassets.(1)EverybankingcompanyshallmaintaininBangladeshincash,goldor
unencumberedapprovedsecuritiesvaluedatapricenotexceedingthecurrentmarketprice,anamountwhich
shallnotatthecloseofbusinessonanydaybelessthanthepercentageofitstimeanddemandliabilitiesthe
BangladeshBankdeterminesfromtimetotime.
Explanation.Forthepurposesofthissection,"unencumberedapprovedsecurities"shallincludetheapproved
securitieswhichthebankingcompanyhaslodgedwithanotherinstitutionforanadvanceoranyotherkindof
creditbutthisdefinitionshallincludeonlysuchamountofthevalueofthesecuritiesashasnotbeendrawn.
(2)Incomputingtheamountreferredtoinsubsection(1),amountsdepositedbyanybankingcompany
incorporatedoutsideBangladeshwiththeBangladeshBankundersubsection(3)ofsection13,amounts
depositedbyanybankingcompanywithinBangladeshincurrentaccountwiththeBangladeshBankoranyofits
agentsorbothandamountsmaintainedwiththeBangladeshBankasbalancingdepositsshallbedeemedtobe
cash.
(3)TheBangladeshBankshalldeterminethemethodofascertainingassetsandliabilitiesandtheratioofassets
tobemaintainedcontinually.
(4)Everybankingcompanyshall,beforethecloseofthemonthtowhichthereportrelates,submittothe
BangladeshBankamonthlyreportintheprescribedformandmanner,whichshallcontainthefollowing
informations,namely:

a)itsassetsmaintainedinaccordancewiththissectionand
b)itstimeanddemandliabilitiesinBangladeshatthecloseofeachThursdayduringthemonth,and
ifanyThursdayisapublicholidayundertheNegotiableInstrumentsAct,1881(XXVIof1881),at
thecloseoftheproceedingworkingday.

(5)WhereitappearstotheBangladeshBankthatabankingcompanyatanytimefailstomaintainliqiuidassets
totheextentdetermined,thatbankingcompanyshallbeboundtopayforthedeficitinthementionedassetsa
fineinformofthehighestinterestratetakenbytheBangladeshBankforthegrantingofloans.

34.AssetsinBangladesh.(1)OnthecloseofanyworkingdaytheassetsinBangladeshofeverybanking
companyshallnotbelessinvaluethansuchamountofitspresenttimeanddemandliabilitiesastheBangladesh
Bankmayprescribebylaw:
Providedthatthepercentagesodeterminedshallundernocircumstancesexceedeightypercentofthose
liabilities.
(2)Everybankingcompanyshall,beforethecloseofthemonthsuccedingthattowhichthereportrelates,
submittotheBangladeshBankareportintheprescribedformandmanner,whichshallcontainthefollowing
particulars,namely:

a)itsassetsmaintainedinaccordancewiththissection
b)itstimeanddemandliabilitiesinBangladeshatthecloseofeveryThursdayduringamonthorif
anyThursdayisapublicholidayundertheNegotiableInstrumentsAct,1881(XXVIof1881),at
thecloseoftheproceedingworkingday.

(3)Forthepurposeofthissection

a)alloranyofthefollowingbillsorsecuritiesshall,evenifheldoutsideBangladesh,bedeemed
assetsinBangladesh,

i)exportbillsclaimedinBangladeshorimportbillsclaimedandpayableinBangladesh
andexpressedinacurrencyapprovedbytheBangladeshBankand
ii)securitiesapprovedbytheBangladeshBank:
ProvidedthatsuchassetsasintheopinionoftheBangladeshBankcannotproperlybe
regardedasassetsshallbeexcluded.

b)"liabilitiesinBangladesh"shallnotincludethepaidupcapitalorthereservesorcredits
mentionedintheprofitandlossaccountofthebankingcompany.

35.Unclaimedassetsandvaluables.(1)Inthecasethat

a)atanybranchinBangladeshofanybankingcompanytherehasbeennobusinessconnectionwith
regardtoanamountpayableinBangladeshicurrencyofanyoneotherthantheGovernment,aminor
oraCourtforaperiodoftenyearsfromsuchdateasisspecifiedinthefollowingclauses,namely:

i)inthecaseoffixedtermdeposits,fromtheexpiryofthetermand
ii)inthecaseofotherdeposits,fromthedateofthelasttransactionorthelast
acknowledgedreceiptofastatementofaccountorthelastrequestforsuchastatement
or
b)adividendtobepayedonadeposit,abonus,aprofitoranyotherpayableamounthasnotbeen
claimedorpayedfortheperiodoftenyearsfromthedateitwastobeclaimedorpayedor
c)onebranchofabankingcompanyhastransmittedtoanotherofitsbranchesacheque,draughtor
billofexchangeandtheamountofmoneyhasnotbeenpaidtoitforaperiodoftenyearsfromthe
dateofissue,certificationoracceptanceofthatcheque,draughtorinstrumentor
d)anapprovedsecurity,share,articleorvaluablegivenintocustodyofabankingcompany,
henceforthgenerallyandparticularlyreferredtoasvaluables,hasnotbeeninspectedorrecognized
bythedepositorforaperiodoftenyearsfromhislastinspectionorrecognition,

thebankingcompanyshalltransmitwithinthreemonthbyregisteredpostawrittennoticetogetherwithaform
toacknowledgereceipttothelastaddressgivenortransmittedofthecreditorofthatamount,cheque,draughtor
billofexchangeorapersonactinginhisbehalfandthedepositorofthevaluables.
(2)Threemonthsafterthetransmissionofthenoticereferredtoinsubsection(1)aletterofreceiptoraresponse
stillnothavingbeenreceived,thesaidcompanyshall,asthecasemaybe,takethefollowingmeasures,namely:

a)inthecaseofanamountofmoneyreferredtoinsubsection(1),thepaymentofanamountof
moneyequivalenttothatamountplustheintereststotheBangladeshBank
b)inthecaseofacheque,draughtorbillofexchangereferredtoinsubsection(1),thepaymentof
anamountofmoneyequivalenttotheamountplustheinterestifanythebankweretopayon
presentationofthechequeetc.totheBangladeshBank
c)inthecaseofvaluablesreferredtoinsubsection(1),thetransmissionofthosevaluablessubject
totheconditionsoftheliability,instrumentordirectionunderwhichtheyhadbeengiveninto
custodyofthebankingcompanytotheBangladeshBankand

aftersuchpaymentortransferthatcompanyshallnolongerholdanyresponsibilitywithregardtothose
amounts,cheques,draughtsorbillsofexchange.
(3)Anoticetobegivenundersubsection(1),

a)shallbetransmitted,inthecaseofacommercialinstitution,tooneofitsmembersormanagers
or,inthecaseofajointHindufamily,tooneofitsadultmembersand,inthecaseofanassociation
consistingofindividuals,toitschiefofficer
b)shallbetransmittedtotherepresentativedulyauthorizedbytherecipientor,incaseofthe
recipient'sdeath,tohislegalrepresentativeor,incaseoftherecipientbeingdeclaredinsolvent,to
hisassignee:

Providedthatthebankingcompanyshallbeinformedabouttheappointmentbytherecipientofarepresentative
ortherecipient'sdeathorhisbeingdeclaredinsolvent

c)shall,incaseoftherebeingjointcreditorsofachequeordraughtorbillofexchangeormorethan
onerecipientofabenefitorvaluablesgivenintocustodyinthenameofmorethanoneperson,be
deemedtohavebeentransmittedtoallpersonsconcernediftransmittedtoanyofthem.
d)shall,notwithstandingthatthenoticereachedanotherpersoninspiteoftherecipient'saddress
havingbeenproperlywrittenonthecoverorenvelope,thepostagestampfixedandthenotice
throwninamailboxortherecipientdied,gotmentallyderangedorinsolventwithoutthebanking
companybeinginformedaboutitbeforetransmittingthenoticeorthepostdepartmentrecordeda
statementregardingthecoverorenvelopecontainingthenoticetosuchorsimiliareffectthat"the
recipienthasgoneaway",aftertheexpiryoffifteendaysbeginningfromthedateonwhichthe
coverorenvelopehasbeenthrowninamailbox,bedeemedtohavebeendulypassed.

(4)Ifthereexistsasignedconfirmationoftheofficerresponsibleforthefixingofpostagestampsandthe
writingofaddressesonletterswritteninbehalfofabankingcompanyandfortheirtransmissionbymailtosuch
effectthatanoticetobepassedundersubsection(1)hasbeenthrowninamailboxaftertheaddresshadbeen
properlywrittenandthepostagestampfixedonthecoverorenvelopecontainingit,suchconfirmationshallbe
deemedbearingconduciveevidenceofthetransmissionofthenotice.
(5)Notwithstandinganythingtothecontrarycontainedintheconditionsofthedebtconcernedorinany
instrumentorintheprovisionsofanyotherAct,afterthetransmissionofanamountundersubsection(2)bya
bankingcompanytotheBangladeshBanknointerestshallbepaidonthatamountnorabalancebecomputedon
it.
(6)Anybankingcompanyshallafterthetransmissionofanyamountofmoneyortransferofinstrumentsor
valuablesundersubsection(2)totheBangladeshBankpreservethesignaturecardandotherdocuments
connectedtherewithaswellasdocumentsattestingthesignatureanditshallcontinuetodosounlessinformed
bytheBangladeshBankthattherebenonecessityforsuchpreservation.
(7)NothingcontainedintheLimitationAct,1908(IXof1908)oranyotherActinforceforthetimebeingshall
cancelanyresponsabilityundersubsection(2)ofabankingcompanytowardtheBangladeshBank.
(8)Anybankingcompanyholdingsubjecttosubsection(1)aftertheexpiryoffulltenyearsunclaimedamounts
ofmoneyorvaluablesunpaidor,asthecasemaybe,notreturned,shallwithinthelastthirtydaysofeveryfifth
yearsubmitanaccountofallthoseamountsandvaluablesintheformandmannerprescribedbylawtothe
BangladeshBank.
(9)TheBangladeshBankshallpublishintheofficialGazetteandnotlessthantwodailiesfortheperiodofone
yearonceinthreemonthalistcontainingallamountsofmoneyandvaluablesitisgoingtoseizeunder
subsection(2):
Providedthatthereshallbenonecessitytopublishalistofsuchunclaimedamountsandvaluables,ifthe
Governmentcomestodecidetotheeffectthatthereshallbenonecessitytopublishalistoftheamountsand
valuablesseizedbytheBangladeshBank.
10)WhateverbankingcompanyhasdepositedanamountofmoneyorvaluablesattheBangladeshBankunder
subsection(2)may,withinthirtydaysaftersuchdepositing,claimitsprevioustitletothatamountofmoneyor
thosevaluablesfromtheBangladeshBankorthatitbegivenbackorlaidaside.
11)Whoeverclaimsanamountofmoneyorvaluablesdepositedortransferredundersubsection(2)shallsubmit
hisclaimtotheBangladeshBank.
12)TheBangladeshBankmay,subjecttotheprovisionsofsubsection(10),(13)and(15),decreethataclaim
submittedundersubsection(10)and(11)bereasonable,and,withviewtoaclaimsubmittedundersubsection
(11),theBangladeshBankshallbe,afterhandingovertheamountofmoneyorthevaluablesagainstareceipt
fromthereceiver,releasedfromanyobligationinthismatter.
13)AnobjectionrelatingtoanamountofmoneyorvaluablestransferredtotheBangladeshBankunder
subsection(2)beingsubmittedfordecisiontoaCourtwithinoneyearaftersuchtransferandtheBangladesh
BanknotbeinginformedaboutitbytheCourtorotherwise,theBangladeshBankshallputthatamountof
moneyorthosevaluablesunderitscustodyandprovideforitstransferinaccordancewiththedecisionofthe
Court.
14)Subjecttotheprovisionsofsubsection(10),(13)and(15),ifnoclaimtoanamountofmoneyorvaluables
transferredtoandreceivedbytheBangladeshBankundersubsection(2)hasbeenmadewithinoneyearafter
suchtransferandreceptionoriftheBangladeshBankhasnotbeeninformedthereaboutfromwhateverpart,no
personshall,afterexpiryofthatyear,makeclaimtothatamountofmoneyorthosevaluablesanditshallbe
propertyoftheGovernmentandconferredtoit.
15)Notwithstandinganythingcontainedinsubsection(1)regardingthepassingofanoticebyabanking
companytoacreditorofacheque,draughtorexchangebilloranythingcontainedinsubsection(9)regardingthe
publishingofunclaimedamountsofmoneyorvaluablesbytheBangladeshBank,certificatesofindebtednessor
valuablesshall,incaseofapersonnotresidinginBangladesh,behandedoverinaccordancewiththeformsand
mannersprescribedbytheGovernment.
16)ThedecisionoftheBangladeshBanksubjecttosubsection(12)onanyamountofmoneyoranyvaluables
receivedbytheBangladeshBankundersubsection(2),whetheritapprovesandfulfillstheclaimofabanking
companytoitsprevioustitleoritsclaimthatsuchamountorvaluablesbegivenbackorlaidasideordecides
otherwise,or,asthecasemaybe,onanymattersrelatingtothetitleofanypersonshallbefinal,anditshallnot
bepossibletoraiseanyquestionbeforeaCourt,tribunaloranyotherauthorityotherwisethanintheway
determinedinsubsection(17).
17)WhoeverisaffectedbyandobjectstoadecisionmadebytheBangladeshBankundersubsection(12),may,
withinthirtydaysfromsuchdecision,fileanappealtotheofficerdeterminedbytheGovernorofthatbank,who
shall,however,holdahigherpositionthantheofficerwhomadethedecision.
18)Whendiscussingorsettlingaclaimmadeundersubsection(10)or(11)oranappealfiledundersubsection
(17),theBangladeshBankshallactinthewaydeterminedbylawandwhendecidingacaseitshallhaveallthe
powersofaCivilCourtundertheCodeofCivilProcedure,1908(ActVof1908)withregardtothefollowing
subjects,namely:

a)toensurethepresenceofapersonandtotakehisevidenceonoath
b)toenforcethepresentationofinstrumentsandotherbonds
c)toappointacommissiontotakethedepositionofawitness.

19)AnyproceedingtobesettledbytheBangladeshBankunderthissectionshallbedeemedajudicial
proceedinginaccordancewiththeprovisionofSection228ofthePenalCode,1860(ActXLVof1860)andthe
BangladeshBankshallbedeemedaCivilCourtinaccordancewiththeprovisionofSection480oftheCodeof
CriminalProcedure,1898(ActVof1898)whencarryingonaproceedingunderthissection.
20)Ataproceedingunderthissectionnocourtfeesshallbepaidforthebringingforward,showingorwriting
downofanydocumentorthetakingofanydocumentfromtheBangladeshBank.

36.Halfyearlyreportetc..(1)Everybankingcompanyshallsubmiteveryhalfyear,onthethirtyfirstdayof
DecemberandthethirtiethdayofJune,areportshowingitsassetsandliabilitiesinBangladeshintheprescribed
formandmannertotheBangladeshBank.
(2)TheBangladeshBankmay,bynoticeinwriting,requirebankingcompaniesgenerally,oranybanking
companyinparticular,tofurnishitwithinthetimespecifiedthereinwithstatementsandinformationsetc.
relatingtothebankingbusinessincludingotherformsofbusinessthebankingcompanymaybeengagedin.
(3)TheBangladeshBankmay,withoutprejudicetothegeneralityofthepowergrantedundersubsection(2),
callfromtimetotimeforinformationregardingtheinvestmentsofabankingcompanyinindustrialenterprises,
commerceoragriculture.

37.Powertopublishinformation.TheBangladeshBankmay,ifitconsidersitinthepublicinterestsotodo,
publishinconsolidatedformorotherwiseanyinformationrelatingtoloansoradvancesseizedunderthisAct
andoutstandingformorethanthirtydays.

38.Accountsandbalancesheet.(1)Attheexpirationofeachfinancialyeareverybankingcompany
incorporatedinsideoroutsideBangladeshshall,inrespectofallbusinesstransactedbyitandthroughits
brancheswithinthatyear,prepareabalancesheetandprofitandlossaccountaswellasafinancialreportason
thelastworkingdayoftheyearintheformssetoutinthefirstscheduleorasneartheretoaspossible.
(2)Thebalancesheet,profitandlossaccountandfinancialreportofanybankingcompany

a)shallbesignedinthecaseofabankingcompanyincorporatedinBangladesh,byitsmanaging
directororitsprincipalofficerandwheretherearemorethanthreedirectorsofthebanking
company,byatleastthreeofthosedirectors,andwheretherearenotmorethanthreedirectors,by
allofthem
b)shallbesignedinthecaseofabankingcompanyincorporatedoutsideBangladesh,bythe
manageroragentoftheprincipalofficeofthecompanyinBangladeshandbyanotherofficernext
insenioritytothemanageroragent.

(3)Notwithstandingthattheformsrelatingtothesubmittingofabalancesheet,profitandlossaccountand
financialreportofabankingcompanydifferfromtheformEoftheThirdScheduleoftheCompaniesAct,the
provisionsofthatActshall,inthecaseofsubmittingsuchbalancesheet,profitandlossaccountandfinancial
report,beapplicabletotheextenttheyareconsistentwiththeprovisionsofthisAct.
(4)TheBangladeshBankmayamendtheformssetoutintheFirstSchedule:
Providedthat,nolessthanthreemonthbeforesuchamendment,itgivesnoticeintheofficialGazetteofits
intentionsotodo.
Explanation.UnlessthereexistsadirectionoftheBangladeshBanktothecontrary,inthecaseofspecial
banks,yearinthissectionmeansquinquennium.

39.Audit.(1)Theprofitandlossaccountandfinancialreportofabankingcompanyshallbeauditedin
accordancewiththebalancesheetpreparedundersection38byapersonqualifiedundertheBangladesh
CharteredAccountantsOrder,1973(P.O.No.2of1973),oranyotherlawforthetimebeinginforcetobean
auditorofcompaniesandapprovedbytheBangladeshBanktobequalifiedtoauditabankingcompany.
(2)Theauditorreferredtoinsubsection(1)shallhavethepowersanddutiesof,andshallbesubjecttothe
obligationsandpenaltiesimposedon,auditorsofcompaniesbySection145oftheCompaniesAct.
(3)InadditiontothematterswhichundertheaforesaidActtheauditorisrequiredtostateinhisreport,heshall
alsostate

a)whetherornotthefinancialstandingandtheprofitsandlossesofthecompanyintheperiod
concernedaretrulyreflectedinthefinancialreport
b)whetherornotthefinancialreporthasbeencorrectlypreparedinaccordancewiththeusual
accountingmethods
c)whetherornotthefinancialreporthasbeenmadeinaccordancewiththecurrentrulesandlaws
andtheregulationsissuedbytheBangladeshBankwithregardtoaccounts
d)whetherornotsufficientprovisionshavebeenmadeforsuchadvancesandpropertyassetsasare
doubtful
e)whetherornotthefinancialreport,ondiscussionwithprofessionalaccountantsfromBangladesh,
hasbeenapprovedasbeinginaccordancewiththeregulationsforaccountsissuedbythe
BangladeshBank
f)whetherornotthereportsandaccountsobtainedfromthebranchofficesofabankingcompany
havebeendulykeptandconsolidated
g)whetherornottheinformationandexplanationsrequiredbytheauditorhavebeenfoundtobe
satisfactory
h)anyothermatterwhichtheauditorconsidersshouldbebroughttothenoticeoftheshareholders
ofthecompany

(4)Whereanauditordischarginghisdutyasauditorofabankingcompanyissatisfiedtotheeffectthat

a)anyprovisionofthisActhasbeenseriouslytransgressedoraseriousirregularityhasoccurredin
fulfillingthoseprovisions
b)therehasoccurredacriminaloffenceoffraughtordishonesty
c)onaccountoflossesthecapitalhasfallenundereightyfivepercent
d)thepaymentofthecreditorsdemandsisnolongerguaranteedoranyotherseriousirregularity
hasoccurredor
e)thereexistsanydoubtastothesufficencyofthecompany'sassetstomeetthedemandsofthe
creditors
heshallwithoutanydelayinformtheBangladeshBankonthosesubjects.

40.Submissionofreports.Theaccounts,balancesheetsandreportsreferredtoinsection38andtheauditor's
reportasapprovedbytheManagementBoard,orasthecasemaybe,bytheshareholdersintheGeneralMeeting
ofthecompanyshallbepublishedintheprescribedmannerandthreecopiesofeachshallbefurnishedtothe
BangladeshBankwithinthreemonthofthecloseoftheperiodtowhichthoseaccounts,balancesheetsand
reportsrelate:
ProvidedthattheBangladeshBankmayextendtheperiodforsubmittingthereportsbyafurtherperiodnot
exceedingthreemonth.

41.Transmisionofbalancesheetsetc.toRegistrar.Whereabankingcompanyinanyyearsubmitsits
financialreport,profitandlossaccount,balancesheetandtheauditor'sreportinaccordancewiththeprovisions
ofsection40itmay,whenitisaprivatecompany,atthesametimesendalsototheregistrarthreecopiesofthat
balancesheet,acountandreport,andwheresuchcopieshavebeensent,itshallnotbenecessaryforthe
companytosendagaincopiesofthatbalancesheet,accountandreporttotheregistrarasrequiredbythe
provisionsofsection134(1)oftheCompaniesAct,andthosecopiesshallbechargedwiththefeestobepaidin
accordancewiththatsectionandtheyshallbedeemedinallrespectscopiessubmittedunderthatsection.

42.DisplayofauditedbalancesheetsbybankingcompaniesincorporatedoutsideBangladesh.Every
bankinigcompanyincorporatedoutsideBangladesh
a)shalldisplayacopyofthelastbalancesheetandprofitandlossaccountpreparedundersection
38atanydayproceedingthefirstMondayofFebruaryoftheyearwhichfollowstheyearthat
balancesheetandaccountrelatestoinaconspicuousplaceinitsprincipalofficeandeverybranch
officeinBangladeshandshallkeepituninterruptedlydisplayeduntilitssubsequentbalancesheet
andaccountaredisplayedinthesamemanner
b)everysuchbankingcompanyshallinadditiondisplayinlikemannercopiesofitscomplete
auditedbalancesheetandprofitandlossaccountrelatingtoitsbusinessassoonastheyare
availableandshallkeepthecopiesuninterruptedlydisplayeduntillsuchsubsequentbalancesheet
andaccountaredisplayed.

43.Accountingprovisionsnotretrospective.NothinginthisActshallapplytothepreparationandauditingof
anaccountofabankingcompanyandthesubmissionthereofinrespectofanyaccountingyearwhichhas
expiredpriortothecommencementofthisAct,andnotwithstandinganythingcontainedinthisActsuch
accountsshallbeprepared,auditedandsubmittedinacordancewiththelawinforceimmediatelybeforethe
commencementofthisAct.

44.Inspection.(1)NotwithstandinganythingtothecontrarycontainedintheCompaniesAct,theBangladesh
Bankmayatanytimeand,onbeingdirectedbytheGovernment,shall,byoneormoreofitsofficers,carryout
aninspectionofanybankingcompanyanditsledgersandaccountsandshall,aftersuchinspection,supplyto
thebankingcompanyacopyofthereportpreparedonthebasisofthatinspection.
(2)NotwithstandinganythingtothecontrarycontainedinanyotherActinforceforthetimebeing,andwithout
prejudicetotheprovisionofsubsection(1),theBangladeshBankmayatanytime,byoneormoreofits
officers,examineindetailtheledgersandaccountsofanybankingcompanyandshall,ifrequestedbythe
bankingcompanysotodoorifconsideringaproposaltotakeanymeasureagainstitonthebasisofsuch
examination,supplytothatbankingcompanyacopyofthereportpreparedonthebasisofthatexamination.
(3)Itshallbethedutyofthedirectors,officersandemployeesofabankingcompanyorofitsexternalauditors,
toproduce,ondemandfromthepersonmakinganinspectionundersubsection(1)oranexaminationunder
subsection(2),theledgers,accountsorotherdocumentsofthebankingcompanyconcernedandallstatements
andinformationsrelatingtoitwithinsuchtimeastheinspectororexaminormayspecify.
(4)Thepersonmakinganinspectionundersubsection(1)oranexaminationundersubsection(2)mayexamine
onoathanydirector,officeroremployeeorexternalauditorofthebankingcompanyconcernedwithregardto
anysubjectrelatedtothatbankingcompany.
(5)TheBangladeshBankshall,ifithasbeendirectedbytheGovernmenttocarryoutaninspectionor
examinationunderthissection,and,inanyothercase,may,aftertheterminationofthatinspectionor
examination,submitareportthereoftotheGovernmentandtheGovernment,ifitis,onconsiderationofthe
report,oftheopinionthattheaffairsofthebankingcompanyarebeingconductedtothedetrimentofthe
interestsofitsdepositors,may,aftergivingreasonableopportunitytothatcompanytomakearepresentationin
connectionwiththatreport,byorderinwriting,

a)prohibitthebankingcompanyfromtakingfreshdepositsand
b)directtheBangladeshBanktoapplyundersection66forthewindingupofthebanking
company:

ProvidedthattheGovernmentmaydefer,modifyorannulanyordergivenunderthissectionuponsuch
conditionsasitmaythinkfittoimpose.
(6)TheGovernmentmay,aftergivingreasonablenoticetothebankingcompanyconcerned,publishthe
completereportsubmittedbytheBangladeshBankoranyportionofit.
Explanation.Forthepurposeofthissectiontheexpression"bankingcompany"shallmean

a)inthecaseofabankingcompanyincorporatedoutsideBangladesh,allitsbranchesin
Bangladeshand
b)inthecaseofabankingcompanyincorporatedinBangladesh,allitsbranchesoutside
Bangladesh(itssubsidarybankingcompaniesandallitsbranchessituatedinoroutside
Bangladesh).
(7)NotwithstandinganythingcontainedinanyotherActinforceforthetimebeing,whereabankingcompany
claimsthatareportorinformationrequestedbyanyauthorityotherthanaCourtortheBangladeshBankbe
secrettosuchadegreethatitssubmissionorpublicationwouldmeantopublishinformationsonanyofthe
followingsubjects,namely:

i)suchreservefundashasnotbeenshowninthebalancesheetor
ii)unrealisablecreditsorcreditstherealisationofwhichisdoubtful,notshowninit.

inthatcasethebankingcompanyshallnotbeboundtosubmitthatreportorpublishthatinformationunless
orderedbyaCourtortheBangladeshBank.

45.PoweroftheBangladeshBanktogivedirections.(1)WheretheBangladeshBankissatisfiedthat

a)inthepublicinterest,or
b)toprovidefortheimprovementofthemonetarypolicyorbankingpolicy,or
c)topreventtheaffairsofanybankingcompanybeingconductedinamannerdetrimentaltothe
interestsofthedepositorsorinamannerprejudicialtotheinterestsofthebankingcompanyor
d)tosecurethepropermanagementofanybankingcompany,

itisnecessarytoissuedirectionstobankingcompaniesgenerallyortoanybankingcompanyinparticular,it
mayissuesuchdirectionasitdeemsfitandthebankingcompanyconcernedshallbeboundtocomplywith
suchdirection.
(2)TheBangladeshBankmay,onrepresentationmadetoitoronitsownmotion,cancelormodifyanydirection
issuedundersubsection(1)andsuchcancellationormodificationmaybesubjecttoanycondition.

46.PoweroftheBangladeshBanktoremoveadirectoretc.ofabankingcompany.(1)Wherethe
BangladeshBankissatisfiedthatitisnecessarytoremoveachairmanordirectororprincipalexecutiveofficer,
bywhatevernamehebecalled,ofabankingcompanyinordertopreventitsaffairsbeingconductedina
mannerprejudicialtotheinterestsofthebankingcompanyoritsdepositorsortosecureinthepublicinterestthe
propermanagementofthebankingcompany,itmay,aftercommittingitsreasonstowriting,issuedirectionthat
suchchairman,directororprincipalexecutiveofficerberemovedfromhisoffice.
(2)Beforeissuingadirectionundersubsection(1),thepersonaffectedshallbegivenreasonableopportunityto
makearepresentation:
Providedthat,notwithstandinganythingcontainedinsubsection(2),wheretheBangladeshBankisofthe
opinionthatadelayarisingfromgivingsuchopportunitywillbeprejudicialtothepublicinterestortothe
interestofthebankingcompanyoritsdepositors,itmayatanytime,whenoraftergivingtheabovementioned
opportunityorwhiledecidingonarepresentationmadeunderthatsubsection,give,byadirectioninwritten
form,orderthat

a)thesaidchairmanordirectororprincipalexecutiveofficershall,fromthedateonwhichthe
directioninwritingcomesintoeffect,ceasetoactaschairman,directororprincipalofficerorcease
totakeanypartinthemanagementofthecompanyinanymanner,directlyorindirectlyand
b)whoeveristemporarilyappointedforthispurposebytheBangladeshBankshallactaschairman
or,asthecasemaybe,directororprincipalexecutiveofficer.

(3)Whereachairmanordirectororprincipalexecutiveofficerofabankingcompanyhasbeenremovedunder
subsection(1),heshallnotbereinstatedaschairmanor,asthecasemaybe,directororprincipalexecutive
officer,andheshallnot,forthetermofthedirectionwhichshallnotexceedthreeyears,beconnectedwithor
takepartinanymanner,directlyorindirectly,inthemanagementofthatbankingcompanyoranyotherbanking
company.
(4)Chairmen,directorsorprincipalexecutiveofficersappointedundersubsection(2)shall

a)subjecttotheconditionsdeterminedintheirletterofappointment,occupythatpositionforthe
period,notexceedingoneyear,determinedbytheBangladeshBankandindependanceofthe
BangladeshBankbeingsatisfiedornotand
b)notberesponsible,financialyorotherwise,foranythingcarriedoutinaccomplishmentofthe
dutiesoftheiroffices.

(5)Nopersonremovedundersubsection(1)mayclaimanycompensationonaccountofthushavingbeen
removed.
(6)Nothingcontainedinthissectionshallapplytoanychairman,directororprincipalexecutiveofficer,by
whatevernamehebecalled,chosenorappointedbytheGovernment.

47.PoweroftheBangladeshBanktodismisstheBoardofDirectorsofabankingcompany.(1)Wherethe
BangladeshBankissatisfied

a)thattheBoardofDirectorsofabankingcompany,bywhatevernameitbecalled,conductsits
affairsinamannerdetrimentalorprejudicialtotheinterestofthebankingcompanyorits
depositorsor
b)that,foranyorallofthereasonsmentionedinsubsection(1)ofsection46,itisnecessaryto
dismissthatBoardofDirectors,itmay,aftercommittingitsreasonstowriting,dismissthatBoard
ofDirectorsbyadirectionandthedirectiontodismissthatBoardshallcomeintoeffectfromsuch
dateandbeinforceforsuchperiodasismentionedtherein.

(2)TheBangladeshBankmayextend,fromtimetotime,theperiodofadirectionissuedundersubsection(1),
providedthatthetotalperiodshallnotexceedtwoyears,allextensionsincluded.
(3)ABoardofDirectorsbeingdismissed,thepersonappointedinthisbehalffromtimetotimebythe
BangladeshBankshallhaveallthepowersandfunctions,andaccomplishallthedutiesoftheBoard.
(4)Theprovisionsofsubsection(2),(3),(4)and(5)ofsection46includingtheirnecessarymodificationsshall
beapplicabletoadirectionissuedunderthissection.

48.Restrictions.(1)NopersonotherthantheGovernoroftheBangladeshBankshallissueadirectionunder
section46or47:
ProvidedthattheGovernorshallissuetheabovementioneddirectiononthebasisofareportofthepermanent
committeeestablishedinthisbehalf.
(2)WhoeverhasbeenaffectedbyadirectionfromtheGovernoroftheBangladeshBankundersection46or47
mayappealtotheBoardofDirectorsoftheBangladeshBankandwhateverthatBoarddecidesthereuponshall
befinal.
(3)ItshallnotbepossibletoraiseanyquestionbeforeanyCourt,Tribunaloranyotherauthoritywithregardto
anymeasuretaken,directionissuedordecisionmadeunderthissectionorsection46or47,norshallitbe
possibletoraiseanyquestionbeforeanyCourt,Tribunaloranyotherauthorityagainstsuchmeasure,direction
ordecision.

49.FurtherpowersandfunctionsoftheBangladeshBank.(1)TheBangladeshBankmay

a)cautionorprohibitbankingcompaniesgenerallyoranybankingcompanyinparticularagainst
enteringintoanyparticulartransactionorclassoftransactions.
b)requirebankingcompaniesgenerallyoranybankingcompanyinparticulartorefrainfromtaking
suchactionasitmayspecifyinrelationtoanymatterrelatingtothebusinessofsuchbanking
companyorcompanies,ortotakesuchactioninrelationtheretoastheBangladeshBankthinksfit.
c)onarequestfromthebankingcompaniesconcernedandsubjecttotheprovisionsofsection76
assistasintermediaryorotherwise,inproposalsfortheamalgamationofsuchbankingcompanies.
d)duringthecourse,orafterthecompletion,ofanyinspectionundersection44,byorderinwriting
andonsuchconditionsasmaybespecifiedtherein

i)requirethebankingcompanytocallameetingofitsdirectorsforthepurposeof
consideringanymatterrelatingtoorarisingoutoftheaffairsofthebankingcompany,
orrequireanyofficerofthebankingcompanytodicussanysuchmatterwithanofficer
oftheBangladeshBank
ii)deputeoneofitsofficerstowatchtheproceedingsatanymeetingoftheBoardof
Directorsofthebankingcompanyorofanycommitteeorofanyotherbodyconstituted
byitandrequirethebankingcompanytogiveanopportunitytothatofficertobeheard
atsuchmeetings,andrequirethatofficertosendareportoftheproceedingatsuch
meetingstotheBangladeshBank
iii)requirethebankingcompanytosendtoanyofficerspecifiedbytheBangladesh
Bankallnoticesof,andothercommunicationsrelatingto,anymeetingoftheBoardof
Directorsofthebankingcompanyorofanycommitteeorofanyotherbodyconstituted
byit
iv)appointoneofitsofficerstoobservethemannerinwhichtheaffairsofthebanking
companyorofanyofitsbranchesarebeingconducted
v)withintheprescribedtime,requirethebankingcompanytomake,withinsuchtime
astheBangladeshBankmayspecifyintheorder,suchchangesinitsmanagementas
theBangladeshBankmayconsidernecessaryinconsequenceofthestateofaffairs
disclosedduringoraftertheinspection.

(2)TheBangladeshBankshallmakeanannualreporttotheGovernmentonitsactivitiestoprovideforthe
progressanddevelopmentofthebankingbusinessinthecountry,includinginsuchreportitssuggestionsforthe
strengtheningofthebankingbusinessthroughoutthecountry.

50.CertainprovisionsoftheActnottoapplytocertainbankingcompanies.(1)Theprovisionsofsection
13,subsection(1)ofsection14,andsections24,25,33and34shallnotapplytoanyofthefollowingbanking
companies,namely:

a)companieswhichhavebeenrefusedalicenceundersection13orthelicenceofwhichhasbeen
cancelled
b)companieswhichhavebeenprohibitedfromacceptingfreshdepositsbyacompromise,
arrangementorschemesanctionedbyacourtorbyanyordermadeinanyproceedingrelatingto
suchcompromise,arrangementorscheme
c)companieswhichhavebeenprohibitedfromacceptingfreshdepositsbyvirtueofanyalteration
madeinitsmemorandumofassociation.

(2)WheretheBangladeshBankissatisfiedthatanysuchbankingasisreferredtoinsubsection(1)hasrepaid,
orhasmadeadequateprovisionforrepayingalldepositsacceptedbyit,eitherinfullortothemaximumextent
possible,theBangladeshBankmay,bynoticeintheofficialGazette,notifythatthebankingcompanyhas
ceasedtobeabankingcompanywithinthemeaningofthisAct,andaftersuchnotificationalltheprovisionsof
thisActshallceasetoapplytosuchbankingcompany:
Providedthatsuchnotificationshallbeofnoeffectregardingthingsdoneoromittedtobedonebysuchbanking
companybeforesuchnotice.

ChapterIII

Illegalbankingofcompaniesetc.

51.Powertocallforcertaininformationsetc..WheretheBangladeshBankisofopinionthatanybanking
companyoranyotherpersonisviolatinginthecourseofcarryingthroughabankingbusinesstheprovisionsof
subsection(1)ofsection32,itmay
a)withintheprescribedtimerequirethatcompanyorperson,oranypersonbeingor,atanytime,
havingbeenengagedinorconnectedwiththebusinessofbanking,tosubmitallinformations,
documentsorrecordswithintheirknowledge,possession,responsibilityorcharge,whichare
relatedtotheabovementionedbusiness
b)authorizeanypersontoenterandsearchanyplaceofsuchcompanyorperson,orofanysuch
personasisor,atanytime,hasbeenengagedinorconnectedwiththebusinessofbanking,andto
seizeallbooks,accountbooks,documentsandrecordsrelatingtothebankingbusinesswithinthe
possession,chargeorresponsibilityofthatpersonorcompany,orofanyofitsofficersor
employees.
c)inspectorexamineanyofthebooks,accountbooks,documentsorrecordsreferredtoinclause
b)anditmayquestionanyperson,officeroremployeereferredtointhatclause
d)apply,withregardtosuchcompanyorperson,oranyperson,officeroremployeereferredtoin
clauseb),allpowersgiventotheBangladeshBankundersubsection(1),(2),(4)and(5)ofsection
44.

52.Powertomakepublicannouncements.(1)WheretheBangladeshBankthinksitreasonabletobelieve(if,
afterreasonableinvestigation,itmaintainssuchbelief)thatanybankingcompanyoranypersonreferredtoin
section51isviolatinginthecourseofcarryingthroughabankingbusinesstheprovisionofsubsection(1)of
section32,itmaymakeapublicannouncementtothiseffect:
Providedthat,beforemakingsuchannouncement,thatcompanyorpersonshallbegivenopportunitytopresent
argumentsagainsttheannouncementproposed.
(2)AnyannouncementoftheBangladeshBankundersubsection(1)shallbepublishedinadailynewspaper
and,aftersuchannouncement,nocompany,noritsprincipalexecutiveofficer,noranyofitsdirectors,
managers,officers,employeesoragents,noranyotherpersonreferredtoinsubsection(1),(3)or(4)ofsection
54orinsection55maypretendnottobeinformedaboutit.
(3)Forthepurposeofthischapter,anyannouncementmadeundersubsection(1)shallbeconclusiveevidence
withregardtoanymatterreferredtotherein.

53.Consequenceofannouncementsmadeundersection52.Nobankingcompanyorpersonregardingwhich
anannouncementundersection52hasbeenmade,shallcontinueitsactivitiesandtransactionsandno
transactioncarriedthroughaftersuchannouncementwithsuchcompanyorperson,oranypersonbeingactivein
itsbehalforconsideredtobeactiveinsuchway,shallbevalid.

54.Disposaletc.ofcashdepositsandassets.(1)Notwithstandinganythingcontainedinsection53,abanking
companyorpersonrelatingwhichanannouncementundersubsection(1)ofsection52hasbeenmadeshall,as
fastaspossible,depositallmoney,immovableproperty,shares,possessorytitlesorotherinstrumentsinits
possessionorresponsabilityorunderitscustodyorcontrolorinthepossessionorresponsibility,orunderthe
custodyorcontrol,ofanybodybeingactiveinitsbehalf,withanewbankorapersonauthorizedbyit.
(2)Whereapersonreferredtoinsubsection(1)failstodepositinaccordancetherewiththemoney,immovable
property,shares,possessorytitlesorotherinstrumentswithintwodaysafteranannouncementundersubsection
(1)ofsection52hasbeenmade,theBangladeshBankmayauthorizeforthispurposeanypersontoenterand
searchanyplaceandtoseizeanddepositinaccordancewithsubsection(1)thatmoney,immovablepropertyand
thoseshares,possessorytitlesandotherinstruments.
(3)Thebooks,accountbooks,documents,recordsandassetsofanycompanyorpersonreferredtoinsubsection
(1)ofsection52shallbekeptbythepublicliquidator,publicattorney,interimreceiverorpublicreceiver
appointedbyacourtonthebasisofanapplicationundersection56,or,beforebeingrelievedofthe
responsibilityofhavingthosebooks,accountbooks,documents,recordsandassetsinpossessionorunder
custody,bytheprincipalexecutiveofficerordirectorofthecompanyoramanager,officerandagentofthat
companyorperson,orbyanyotherpersonhavingthosebooks,accountbooks,documents,recordsandassetsin
itspossessionorresponsibilityorunderitscustodyorcontrol,andwhoeverkeepsthosebooks,accountbooks,
documents,recordsandassetsshall,solongashedoesso,beresponsibleforanylossordamageoccuringto
them.
(4)Whoeverisindebtedtoacompanyorpersonreferredtoinanannouncementundersubsection(1)ofsection
52shall,withintheperiodextendingfromthedateofpublishingsuchannouncementtothedateoforderingthe
companytobewounduporacourtpronouncingajudgement,paybackhisdebtsinthewaylaiddownin
subsection(1),andinformtheBangladeshBankthereofinwriting.
(5)Whereasuit,appealorapplicationagainstacompanyorpersonreferredtoinanannouncementunder
subsection(1)ofsection52oranyproceedingarisingfromsuchsuit,appealorapplicationisinconsideration
beforethecommencementofthisAct,allowanceshallbemadeoftheperiodextendingfromthedateof
publishingsuchannouncementtothedateoforderingthecompanytobewounduporacourtpronouncinga
judgement,incomputingtheperiodoflimitationprovidedintheLimitationAct,1908(IXof1908).

55.SubmissionofareportonassetsandliabilitiestotheBangladeshBank.Whereanannouncementunder
sectionsection52hasbeenpublishedwithregardtoabankingcompanyoraperson,theprincipalexecutive
officerandeverydirectorofthatcompany,andthemanagers,directorsandagentsofthatcompanyorperson,
andwhoeverhasaclaimagainstthatcompanyorperson,shall,withinthreedayafterthepublicationofthe
announcementorsuchextendedperiodasisapprovedbytheBangladeshBank,submitareporttoitonallthe
assetsofthatcompanyorpersonundertheircustody.

56.Accessoryprovisionsforwindingupetc..(1)Whereanannouncementundersubsection(1)ofsection52
regardsnotapersoninparticularoracompany,butagroupofpersons,thisgroupofpersonsshallbedeemed
underPartIXoftheCompanyActanunregisteredcompanysubjecttowindingup.
(2)Whereanannouncementundersubsection(1)ofsection52hasbeenpublishedwithregardtoabanking
company,registeredorunregistered,theHighcourtDivisionmayonthebasisofanapplicationmadebythe
BangladeshBank,withinsevendaysfromsuchpublicationorwithinsuchfurthertimeastheGovernmentmay
specify,giveordertowindupthecompany.
(3)Alltheprovisionsofchaptersixandsevenexceptsection64,66and76applicableinthecaseofabanking
companybeingwoundupshallbeapplicableinthecaseofanapplicationmadeundersubsection(2)andthe
proceedingsarisingtherefrom.
(4)NotwithstandinganythingcontainedintheInsolvencyAct,1920(Vof1920),whereanannouncementunder
subsection(1)ofsection52hasaffectedanindividual,itshallbeconsideredanadequatereasonfordeclaring
thatindividualinsolventandthecourtauthorizedtodeclareitinsolventmay,onthebasisofanapplicationmade
bytheBangladeshBank,withinsevendaysfromthepublicationofanannouncementundersubsection(2)of
thissectionorwithinsuchfurthertimeastheGovernmentmayspecifyandwithoutanyfurtherevidence,give
ordertodeclarethatindividualinsolventandtheprovisionsoftheaforementionedActshallbefollowedin
distributingandmanagingthepropertyofthatinsolvent:
Providedthatthecourtshallnotbeentitledtocancelthatordersubsequentlyortoapproveanycompromiseor
anyotherdispositionwithregardtothatperson.

Chapterfour

Prohibitionofcertainactivitiesinrelationtobankingcompanies

57.Punishmentsforcertainactivitiesinrelationtobankingcompanies.(1)Nopersonshall

a)obstructanypersonfromlawfullyenteringorleavinganyofficeorplaceofbusinessofabanking
companyorfromcarryingonanybusinessthereor
b)hold,withintheofficeorplaceofbusinessofanybankingcompany,anydemonstrationwhichis
violentordoanythingwhichobstructs,oriscalculatedtoobstruct,theusualactivitiesand
transactionsofthebankingcompanyor
c)actinanymannercalculatedtounderminetheconfidenceofthedepositorsinthebanking
company.

(2)Whoeverviolatesanyprovisionofsubsection(1)withoutanyreasonableexcuseshallbepunishablewith
imprisonmentofnomorethantwoyearsorafineofnomorethantwentythousandTakasorboth.
(3)Forthepurposeofthissection,"bankingcompany"shallincludeBangladeshBank.

Chapterfive

Acquisitionoftheundertakingsofbankingcompanies

58.Acquisitionoftheundertakingsofbankingcompanies.(1)If,uponreceiptofareportfromthe
BangladeshBank,theGovernmentissatisfiedthatabankingcompany

a)has,onmorethanoneoccasion,failedtocomplywiththedirectionsgiventoitinwritingunder
section29orsection45,insofarassuchdirectionsrelatetobankingpolicy,or
b)isbeingmanagedinamannerdetrimentaltotheinterestsofitsdepositors,andthatintheinterest
ofthedepositorsofsuchbankingcompany,orintheinterestofbankingpolicy,orforthebetter
provisionofcreditgenerallyorofcreditinanyparticulararea,itisnecessarytoacquirethe
undertakingofsuchbankingcompany,theGovernmentmay,afterconsultationwiththeBangladesh
Bank,bynotifiedorder,acquiretheundertakingofsuchcompany,hereinafterreferredtoasthe
acquiredbank,witheffectfromsuchdateasmaybespecifiedintheorder,hereinafterreferredtoas
theappointeddate:
Providedthatnoundertakingofanybankingcompanyshallbesoacquiredunlesssuchbanking
companyhasbeengivenresonableopportunityofshowingcauseagainsttheproposedaction.

Explanation.Inthischapter,"undertaking"inrelationtoabankingcompanyincorporatedoutsideBangladesh,
meanstheundertakingofthecompanyinBangladesh.
(2)Subjecttotheotherprovisionscontainedinthispart,ontheappointeddate,theundertakingoftheacquired
bankandalltheassetsandliabilitiesoftheacquiredbankshallstandtransferredto,andvestin,the
Government.
(3)Theassetsandliabilitiesoftheundertakingofanacquiredbankshallincludeallrights,powers,authorities,
priviledgesandallproperty,whethermovableorimmovable,includingcashbalances,reservefunds,
investments,depositsandallotherinterestsandrightsin,orarisingoutof,suchpropertyasmaybeinthe
possessionof,orheldby,theacquiredbankimmediatelybeforetheappointeddateandallitsaccountbooks,
recordsanddocumentsandshallalsoincludeallitsdebts,liabilitiesandobligations,ofwhateverkind.
(4)Notwithstandinganythingcontainedinsubsection(2),iftheGovernmentissatisfiedthattheundertakingof
theacquiredbankanditsassetsandliabilitiesshould,insteadofvestingintheGovernment,orcontinuingtoso
vest,vestinacompanyestablishedunderanyschememadeunderthisPartorinanycorporation,hereinafterin
thisPartreferredtoasthetransfereebank,itmay,byanordernotifiedintheofficialGazette,directthatthesaid
undertakingincludingtheassetsandliabilitiesthereof,shallvestinthetransfereebankeitheronthepublication
ofthenotifiedorderoronsuchotherdateasmaybespecifiedintheorder.
(5)Wheretheundertakingoftheacquiredbankandtheassetsandliabilitiesthereofvestinthetransfereebank
undersubsection(4),thetransfereebankshall,onandfromthedateofsuchvesting,bedeemedtohavebecome
thetransfereeoftheacquiredbankandalltherightsandallliabilitiesinrelationtotheacquiredbankshall,on
andfromthedateofsuchvesting,bedeemedtohavebeentherightsandliabilitiesofthetransfereebank.
(6)UnlessotherwiseexpresslyprovidedbyorunderthisPart,allcontracts,bonds,powersofattorney,grantsof
legalrepresentationandotherinstrumentsofwhateverkindsubsistingorhavingeffectimmediatelybeforethe
appointeddateandtowhichtheacquiredbankisapartyorwhichareinfavouroftheacquiredbankshallbeof
asfullforceandeffectagainstorinfavouroftheGovernmentorthetransfereebankasifintheplaceofthe
acquirdbanktheGovernmentor,asthecasemaybe,thetransfereebankhadbeenapartytheretoorastheyhad
beenissuedinfavouroftheGovernmentorthetransfereebank,asthecasemaybe.
(7)If,ontheappointeddate,anysuit,appealorotherlegalproceedingispendingbyoragainsttheacquired
bank,thesameshallbecontinuedandshallbedeemedtohavebeenfiledbyoragainsttheGovernmentorthe
transfereebank,asthecasemaybe.

59.PoweroftheGovernmenttomakescheme.(1)TheGovernmentmay,afterconsultationwiththe
BangladeshBank,makeaschemeforcarryingoutthepurposesofthischapterinrelationtoanyacquiredbank.
(2)Inparticular,andwithoutprejudicetothegeneralityoftheforegoingpower,thesaidschememayprovidefor
alloranyofthefollowingmatters,namely:

a)thecompany,orthecorporation,towhichtheundertakingincludingtheassetsandliabilitiesof
theacquiredbankmaybetransferred,andtheconstitution,capital,nameandofficethereof
b)theconstitutionofthefirstBoardofmanagement,bywhatevernamecalled,ofthetransferee
bank,andallsuchmattersinconnectiontherewithastheGovernmentmayconsidertobenecessary
orexpedient
c)thecontinuanceoftheservicesoftheemployeesoftheacquiredbankintheGovernmentorin
thetransfereebank,asthecasemaybe,onthesametermsandconditionsonwhichtheyhadbeen
employedattheacquiredbank
d)thecontinuanceoftherightofanypersonwho,ontheappointeddate,isentitledtoorisin
receiptof,apensionorothersuperannuationorcompassionateallowanceorbenefitfromthe
acquiredbankoranyprovident,pensionorotherfundoranyauthorityadministeringsuchfund,to
bepaidbytheGovernmentorthetransfereebank,asthecasemaybe,thesamepension,allowance
orbenefitsolongasheobservestheconditionsonwhichthethepension,allowanceorbenefitwas
granted
e)themannerofpaymentofthecompensationpayableinaccordancewiththeprovisionsofthis
chaptertotheshareholdersoftheacquiredbank,andwheretheacquiredbankisabanking
companyincorporatedoutsideBangladesh,totheacquiredbankinfullsatisfactionoftheirorasthe
casemaybe,its,claims
f)theprovisionforcompletingtheeffectualtransfertotheGovernmentorthetransfereebank,as
thecasemaybe,ofanyassetorliabilitywhichformspartoftheundertakingoftheacquiredbankin
anycountryoutsideBangladesh
g)suchincidental,consequentalandsupplementalmattersasmaybenecessarytosecurethatthe
transferofthebusiness,propertyandliabilitiesoftheacquiredbanktotheGovernmentor
transfereebank,asthecasemaybe,iseffectualandcomplete.

(3)TheGovernmentmay,afterconsultationwiththeBangladeshBank,bynotificationintheofficialGazette,
addto,amendorvaryanyschememadeunderthissection.
(4)EveryschememadeunderthissectionshallbepublishedintheofficialGazette.
(5)CopiesofeveryschememadeunderthissectionshallbelaidbeforetheParliamentassoonasitmaybeafter
itismade.
(6)Theprovisionsofthispartinrelationtoschemesshallhaveeffectnotwithstandinganythingtothecontrary
containedinanyotherprovisionsofthisActorinanyotherlawooranyagreement,wardorotherinstrumentfor
thetimebeinginforce.
(7)EveryschememadeunderthissectionshallbebindingontheGovernmentortransfereebank,andalsoonall
members,creditors,depositorsandemployeesoftheacquiredbankandofthetransfereebankandonanyother
personhavinganyright,liabilityorpowerinrelationto,orinconnectionwith,theacquiredbankorthe
transfereebank.
60.Compensationtobegiventotheshareholdersoftheacquiredbank.(1)Everypersonwho,
immediatelybeforetheappointeddate,isregistratedasaholderofsharesintheacquiredbankor,wherethe
acquiredbankisabankingcompanyincorporatedoutsideBangladesh,theacquiredbank,shallbegivenbythe
Government,orthetransfereebank,asthecasemaybe,suchcompensationinrespectofthetransferofthe
undertakingoftheacquiredbankasisdeterminedinaccordancewiththeprescribedprinciples.
(2)Nothingcontainedinsubsection(1)shallaffecttherightsintersebetweentheholderofanyshareinthe
acquiredbankandanypersonwhomayhaveanyinterestinsuchsharesandsuchotherpersonshallbeentitled
toenforcehisinterestagainstthecompensationdeterminedundersubsection(1),butnotagainstthe
Government,orthetransfereebank.
(3)Theamountofcompensationtobegivenundersubsection(1)shallbedeterminedinthefirstinstanceby
theGovernmentor,asthecasemaybe,thetransfereebank,inconsultationwiththeBangladeshBankandin
accordancewiththerulesmadeunderthesaidsubsection,andshallbeofferedbyittoallthosetowhom
compensationispayableunderthesaidsubsectioninfullsatisfactionthereof.
(4)Iftheamountofcompensationofferedintermsofsubsection(3)isnotacceptabletoanypersontowhom
thecompensationispayable,suchpersonmay,beforesuchdateasmaybenotifiedbytheGovernmentinthe
officialGazette,requesttheGovernmentinwriting,tohavethematterreferredtotheTribunalconstitutedunder
section61.
(5)IftheGovernmentreceivesrequestsundersubsection(4)fromshareholdersholdingsharesnotlessthan
onefourthinvalueofthepaidupcapitaloftheacquiredbank,or,wheretheacquiredbankisabanking
companyincorporatedoutsideBangladesh,fromtheacquiredbank,theGovernmentshallhavethematter
referredtotheTribunalfordecision.
(6)IftheGovernmentdoesnotreceiveanyrequestsundersubsection(4),theamountofcompensationoffered
undersubsection(3),orwhereanysuchrequesthasbeenreceivedandreferredtotherTribunalinaccordance
withtheprovisionofsubsection(5),theamountdeterminedbyit,shallbethecompensationpayableundersub
section(1)andshallbefinalandbindingonallpartiesconcerned.

61.ConstitutionoftheTribunal.(1)TheGovernmentmay,forthepurposeofthischapter,constitutea
TribunalconsistingofoneChairmanandtwoothermembers.
(2)TheChairmanoftheTribunalshallbeapersonwhois,orhasbeenajudgeoftheSupremeCourt,andofthe
twoothermembers,oneshallbeapersonwho,intheopinionoftheGovernment,hashadexperienceinbanking
andcommercialmattersandtheothershallbeapersonwhoisacharteredaccountantwithinthemeaningofthe
CharteredAccountantsOrder,1973(P.O.No.2of1973).
(3)If,foranyreason,avacancyoccursintheofficeoftheChairmanoranyothermemberoftheTribunal,the
Governmentmayfillthevacancybyappointinganotherpersontheretoinaccordancewiththeprovisionsofsub
section(2)andanyproceedingmaybecontinuedbeforetheTribunal,soreconstituted,fromthestageatwhich
thevacancyoccurred.
(4)TheTribunalmay,forthepurposeofdetermininganycompensationpayableunderthischapter,chooseone
ormorepersonshavingspecialknowledgeorexperienceofanyrelevantmattertoassistitinanymatter
whatsoever.

62.TheTribunaltohavepowersofacivilCourt.(1)TheTribunalshallhavethepowersofacivilCourt,
whiletryingasuit,undertheCodeofCivilProcedure,1908(ActVof1908),inrespectofthefollowingmatters,
namely:

a)summoningandenforcingtheattendanceofanypersonandexamininghimonoath
b)requiringthediscoveryandproductionofdocuments
c)receivingevidenceonaffidavits
d)issuingcommissionsfortheexaminationofwitnessesanddocumentsetc..

(2)Notwithstandinganythingcontainedinsubsection(1)orinanyotherActforthetimebeinginforce,the
TribunalshallnotcompeltheGovernmentorBangladeshBank,

a)toproduceanybooksofaccountsorotherdocumentswhichtheGovernment,ortheBangladesh
Bank,claimstobeofaconfidentialnature,or
b)tomakeanysuchbooksordocumentspartsoftherecordoftheproceedingsbeforetheTribunal,
or
c)togiveinspectionofanysuchbooksordocumentstoanypartybeforeitortoanyotherperson.

63.ProcedureoftheTribunal.(1)TheTribunalshallhavepowertoregulateitsownprocedure.
(2)TheTribunalmayholdthewholeoranypartofitsinquiryincamera.
(3)AnyclericalorarithmeticalerrorinanyorderoftheTribunaloranyerrorarisingthereinfromanyaccidental
sliporomissionmaybecorrectedbytheTribunaleitherofitsownmotionoronthesupplicationofanyofits
parties.

Chaptersix

Suspensionofbusinessandwindingupofbankingcompanies.

64.Suspension.(1)TheHighCourtDivisionmay,ontheapplicationofabankingcompanywhichis
temporarilyunabletomeetitsobligations,makeanorderstayingforafixedperiodonsuchconditionsasitmay
thinkfitthecommencementorcontinuanceofallproceedingsagainstthecompany,andacopyofthatorder
shallbeforwardedtotheBangladeshBank,andtheHighcourtDivisionmayfromtimetotimeextendthe
period.Buttheextendedperiodshallnotexceedsixmonth.
(2)Noapplicationundersubsection(1)shallbereceivableunlessitisacompaniedbyareportoftheBangladesh
Banktotheeffectthatthebankingcompanywhichmadetheapplicationwillbeabletopayitsdebts:
ProvidedthatinthecaseofanapplicationnotaccompaniedbysuchreporttheHighCourtDivisionmay,ifit
thinksreasonable,grantremedyunderthissectiontothatcompany,andifsuchremedyisgranted,shallcallfor
areportfromtheBangladeshBankontheaffairsofthebankingcompany,onreceiptofwhichitmayeither
rescinditsorderorpasssuchfurtherorderasitmaythinkfitandproper.
(3)Whenanapplicationundersubsection(1)issubmitted,theHighCourtDivisionmayappointaspecial
officerwhoshallforthwithtakeintohiscustodyorunderhiscontrolalltheassets,books,documents,effects
andactionableclaimstowhichthebankingcompanyisorappearstobeentitledandshallalsoexercisesuch
otherpowersastheHighCourtmayconferonhim,havingregardtotheinterestsofthedepositorsofthe
bankingcompany.
(4)WheretheBangladeshBankissatisfiedthattheaffairsofabankingcompanyinrespectofwhichanorder
undersubsection(1)hasbeenmade,arebeingconductedinamannerdetrimentaltotheinterestsofits
depositors,itmaymakeanapplicationtotheHighCourtDivisionforthewindingupofthatbankingcompany,
andwheresuchapplicationhasbeenmade,theHighCourtDivisionshallnotextendtheperiodofanorderto
stayproceedingsunderthatsubsection.

65.WindingupbyHighCourt.(1)Notwithstandinganythingcontainedinsection153,162and271ofthe
CompaniesAct,andwithoutprejudicetothepowersgivenundersubsection(1)ofsection64,theHighCourt
Divisionshallunderthissectionorderthewindingupofabankingcompany,if

a)thebankingcompanyisunabletopayitsdebts
b)theBangladeshBankmakesanapplicationforitswindingupunderthissectionorsection64.
(2)TheBangladeshBankshallmakeanapplicationunderthissectionforthewindingupabankingcompanyif
itisdirectedsotodobyanorderunderclauseb)ofsubsection(5)ofsection44.
(3)TheBangladeshBankmaymakeanapplicationunderthissectionforthewindingupofabankingcompany,

a)ifthebankingcompany

i)hasfailedtocomplywiththerequirementsspecifiedundersection13or
ii)hasbyreasonsoftheprovisionsofsection31becomedisentitledtocarryonbanking
businessinBangladesh
iii)hasbeeninhibitedfromreceivingfreshdepositsbyanorderunderclausea)of
subsection(5)ofsection44,orunderclauseb)ofsubsection(5)ofArticle36ofthe
BangladeshBankOrder,1972(P.O.No.127of1972)or
iv)hasfailedtocomplywithanyrequirementofthisOrdinanceotherthanthe
requirementslaiddowninsection13,andafterbeinginformedaboutitsfailuresbya
noticeinwriting,continuessotodo
v)hascontravenedanyprovisionofthisOrdinanceandcontinuessuchcontravention
beyondsuchperiodasmaybespecifiedinthatbehalfbytheBangladeshBankfrom
timetotime,afternoticeinwritingofsuchcontraventionhasbeenconveyedtoitor

b)ifintheopinionoftheBangladeshBank

i)acompromiseorarrangementsanctionedbyaCourtinrespectofthebanking
companycannotbeworkedsatisfactorilywithorwithoutmodificationsor
ii)thereturns,statementsorinformationfurnishedtoitunderorinpursuanceofthe
provisionsofthisOrdinancedisclosethatthebankingcompanyisunabletopayits
debtsor
iii)thecontinuanceofthebankingcompanyisprejudicialtotheinterestsofits
depositors.

(4)Withoutprejudicetotheprovisionscontainedinsection163oftheCompaniesAct,abankingcompanyshall
bedeemedtobeunabletopayitsdebtsif

a)ithasrefusedtomeetanylawfuldemandmadeatanyofitsofficesorbrancheswithintwo
workingdaysor
b)suchdemandismadeelsewhereandtheBangladeshBankcertifiesthatthebankingcompanyis
unabletopayitsdebtsor
c)theBangladeshBankcertifiesinwritingthatthebankingcompanyisunabletopayitsdebts.

(5)TheBangladehBankshallsendacopyofanyapplicationmadeundersubsection(1)totheregistrarofthe
SupremeCourt.

66.Courtliquidator.(1)When,havingregardtothenumberofproceedingsforthewindingupofbanking
companiesandtheextentoftheworkinvolvedinsuchproceedings,theGovernmentisoftheopinionthatitis
necessaryandexpedient,forthepurposeofconductingallproceedingsforthewindingupofbankingcompanies
andperformingsuchotherdutiesinreferencetheretoastheHighCourtDivisionmayimpose,toattachacourt
liquidatortotheHighCourtDivision,itmay,afterconsultationwiththeBangladeshBank,appointacourt
liquidatorforsuchperiodasitmaydetermine.
(2)Wherethereacourtliquidatorhasbeenappointedundersubsection(1)andanorderhasbeenpassedbythe
HighCourtDivisionforthewindingupofanybankingcompany,then,notwithstandinganythingcontainedin
section171or175oftheCompaniesAct,thecourtliquidatorshallbecometheofficialliquidatorofthebanking
company.
(3)WherethereisacourtliquidatorattachedtotheHighCourtDivisionandanyproceeding,forthewindingup
ofabankingcompanyinwhichanypersonotherthantheBangladeshBankorthecourtliquidatorhasbeen
appointedasofficialliquidator,ispendingimmediatelybeforethecommencementofthisOrdinanceorthedate
onwhichtheliquidatorissoattached,whicheverislater,then,notwithstandinganythingcontainedinsection
176oftheCompaniesAct,thepersonappointedasofficialliquidatorshall,onsuchcommencementor,asthe
casemaybe,onthedateoftheattachment,bedeemedtohavevacatedhisofficeandthevacancyshallbe
deemedtobefilledupbytheappointmentofthecourtliquidatorastheofficialliquidator:
ProvidedthatwheretheHighCourtDivision,aftergivingthecourtliquidatorandtheBangladeshBankan
opportunityofbeingheard,isofopinionthattheappointmentofthecourtliquidatorwouldbedetrimentaltothe
depositorsofthebankingcompany,itmaydirecttheformerofficialliquidatortocontinuetoactassuch.

67.AppointmentoftheBangladeshBanketc.asliquidator.Notwithstandinganythingcontainedinsection
50,orinsection175oftheCompaniesAct,whereinanyproceedingforthewindingupofabankingcompany
theBangladeshBankappliestotheHighCourtDivisiontoappointtheBangladeshBankoranyindividualas
officialliquidator,theapplicationshallordinarilybegrantedandtheliquidator,ifany,functioninginsuch
proceedingshallvacateofficeuponsuchappointment.

68.CompaniesActtoapplytoliquidators.(1)AlltheprovisionsoftheCompaniesActrelatingtoa
liquidator,andsofarastheyarenotinconsistentwiththisOrdinance,shallbeapplicableinthecaseof
liquidatorsappointedundersection67or68.
(2)Anyreferencetothe"officialliquidator"inthischapterorinchapter7shallbeconstruedasincludinga
referencetoanyliquidatorofabankingcompany.

69.Restrictiononstayofproceedings.Notwithstandinganythingtothecontrarycontainedinsection173of
theCompaniesAct,theHighCourtDivisionshallnotmakeanyorderstayingtheproceedingsinrelationtothe
windingupofabankingcompany,unlessitissatisfiedthatanarrangamenthasbeenmadewherebythe
companycanpayitsdepositorsinfullastheirclaimsaccrue.

70.Submissionofapreliminaryreportbytheofficialliquidator.Notwithstandinganythingtothecontrary
containedinsection177BoftheCompaniesAct,whereawindinguporderhasbeenmadeinrespectofa
bankingcompanywhetherbeforeorafterthecommencementofthisOrdinance,theofficialliquidatorshall
submitapreliminaryreporttotheHighCourtDivisionwithintwomonthfromthedateofthewindinguporder
orwherethewindinguporderhasbeenmadebeforesuchcommencement,withintwomonthsfromsuch
commencementandthatreportshallcontainthefollowingitems,namely:

a)theinformationrequiredbytheCompaniesActsofarasitisavailabletohim
b)theamountofassetsincashwhichareinhiscustodyorunderhiscontrolonthedateofthe
report
c)theamountwhichislikelytobecollectedincashbeforetheexpiryofthatperiodoftwomonth:

ProvidedthattheHighCourtDivisionmay,ifitthinksfit,inanyparticularcaseextendtheperiodoftwo
monthsbyafurtherperiodofonemonth.

71.Noticetopreferentialclaimantsetc..(1)Withinfifteendaysfromthedateofthewindinguporderofa
bankingcompanyorwherethewindinguporderhasbeenmadebeforethecommencementofthisAct,within
onemonthfromsuchcommencement,theofficialliquidatorshall,forthepurposeofmakinganestimateofthe
debtsandliabilitiesofthebankingcompany(otherthanitsliabilitiesandobligationstoitsdepositors),bynotice
servedinsuchmannerastheBangladeshBankmaydirect,calluponeveryclaimantentitledtopreferential
paymentundersection230oftheCompaniesActandeverysecuredandeveryunsecuredcreditorofthe
companytosendtohimwithinonemonthfromthedateoftheserviceofthenoticeastatementoftheamount
claimedbyhim.
(2)Everynoticeundersubsection(1)senttoaclaimanthavingaclaimundersection230oftheCompaniesAct
shallstatethatifastatementoftheclaimisnotsenttotheofficialliquidatorbeforetheexpiryoftheperiodof
onemonthfromthedateoftheservice,theclaimshallnotbetreatedasaclaimentitledtobepaidunderthat
sectioninprioritytoallotherdebts,anditshallbetreatedasanordinarydebtofthebankingcompany.
(3)Everynoticeundersubsection(1)senttoasecuredcreditorshallrequirehimtovaluehissecuritybeforethe
expiryoftheperiodofonemonthfromthedateoftheserviceofthenoticeandshallstatethatifhedoesnot
sendastatementoftheclaimtogetherwiththevaluationofthesecuritybeforetheexpiryofthesaidperiod,the
officialliquidatorshallhimselfvaluethesecurityandsuchvaluationshallbebindingonthecreditor.
(4)Ifaclaimantorcreditorfailstocomplywiththedirectioninthenoticesenttohimundersubsection(1),
then

a)inthecaseofaclaimant,hisclaimswillnotbeentitledtobepaidinprioritytoallotherdebts,
butshallbetreatedasanordinarydebtofthebankingcompany
b)inthecaseofacreditor,theofficialliquidatorshallhimselfvaluethesecurityandsuchvaluation
shallbebindingonthecreditor.

72.Powertodispensewithmeetingsofcreditorsetc..Notwithstandinganythingtothecontrarycontainedin
section178Aand183oftheCompaniesAct,theHighCourtDivisionmay,intheproceedingsforwindingupa
bankingcompanydispensewithanymeetingofclaimantsorothercreditorsofthecompanyortheappointment
ofacommitteeif,inordertoavoidunjustifieddelayandexpense,itthinksfitsotodo.

73.Bookeddepositors'creditstobedeemedproved.Inanyproceedingforthewindingupofabanking
company,everydepositorshallbedeemedtohavefiledhisclaimfortheamountshowninthebooksofthe
bankingcompanyasstandingtohiscreditand,notwithstandinganythingtothecontrarycontainedinsection
191oftheCompaniesAct,theHighCourtDivisionshallpresumesuchclaimtohavebeenproved,unlessthe
officialliquidatorshowsthatthereisreasonfordoubtingitscorrectness.

74.Preferentialpaymenttodepositors.(1)Ineveryprocedingforthewindingupofabankingcompany
whereawindinguporderhasbeenmade,whetherbeforeorafterthecommencementofthisOrdinance,within
threemonthsfromthedateofthewindinguporderorwherethewindinguporderhasbeenmadebeforesuch
commencement,withinthreemonthstherefrom,thepreferentialpaymentsreferredtoinsection230ofthe
CompaniesAct,inrespectofwhichclaimshavebeenraisedinviewof,andwithinonemonthfromthedateof
theserviceofthenoticeundersection71,shallbemadebytheofficialliquidatororadequateprovisionforsuch
paymentshallbemadebyhim.
(2)Inthecaseofpreferentialpaymentsinaccordancewiththeprovisionofsubsection(1),theprocedureshall
beasfollows,namely:

a)inthefirstplace,toeverydepositorinthesavingsbankaccountofthebankingcompanyasumof
2500Takasorthebalanceathiscredit,whicheverisless
b)inthesecondplace,inordertopaywhatisduetothecreditorsofthebankingcompany,toevery
otherdepositorofthecompanyfiftypercent.ofthebalanceathiscreditor2500Takaswhicheveris
less:

Providedthatthesumtotaloftheamountspaidunderclausea)andb)toanyonepersonwhoisadepositorin
thesavingsbankaccountofthebankingcompanyandadepositorinanyotheraccount,shallnotexceedthesum
of2500Takas,butthisprovisionshallnotapplyinthecaseofapersonwhoisjointlywithanyotherperson
depositorinanaccount.
(3)Wherewithintheperiodofthreemonthsreferredtoinsubsection(1)fullpaymentincashcannotbemadeof
theaccountsrequiredtobepaidunderclausea)orb),theofficialliquidatorshallpaywithinthatperiodtoevery
depositorunderclausea)or,asthecasemaybe,clauseb)onaproratabasissomuchoftheamountduetothe
depositorwithassetsincashasheisabletodo,andtheofficialliquidatorshallpaytherestoftheamountto
everydepositorasandwhensufficientassetsarecollectedbytheofficialliquidatorincash.
(4)Afterpaymentshavebeenmadetothedepositorsinaccordancewithsubsection(1),(2)and(3),theofficial
liquidatorshallpayonaproratabasisthegeneralcreditorswiththeassetsofthebankingcompany,andheshall
then,asandwhentheassetsofthebankingcompanyarecollectedbyhimincash,makepaymentonaprorata
basiswiththecollectedassets,ofthefurthersumswhichareduetothedepositorsreferredtoinclausea)and
clauseb)ofsubsection(2).
(5)Inordertoenabletheofficialliquidatortohaveunderhiscontrolincashasmuchoftheassetsofthe
bankingcompanyaspossible,thesecuritiesgiventotosecuredcreditorsmayberedeemedbytheofficial
liquidator

a)wheretheamountduetothecreditorismorethanthevalueofthesecuritiesasassessedbyhim
or,asthecasemaybe,asassessedbytheofficialliquidator,onpaymentofsuchvalueand
b)wheretheamountduetothecreditorisequaltoorlessthanthevalueofthesecuritiesasso
assessed,onpaymentoftheamountdue:

Providedthatwheretheofficialliquidatorisnotsatisfiedwiththevaluationmadebythecreditor,hemayapply
totheHighCourtDivisionformakingavaluation.
(6)Whenanyclaimant,creditorordepositortowhomapaymentistobemadeinaccordancewiththe
provisionsofsubsection(1),(2),(3),(4)or(5),cannotbefoundorisnotreadilytraceable,adequateprovision
shallbemadebytheofficialliquidatorforsuchpayment.
(7)Forthepurposeofthissection,thepaymentsspecifiedineachofthefollowingclausesshallbetreatedas
paymentsofadifferentclass,namely:

a)paymentstopreferentialclaimantsundersection230oftheCompaniesAct
b)paymentsunderclausea)ofsubsection(2)tothedepositorsinthesavingsbankaccount
c)paymentsunderclauseb)ofsubsection(2)totheotherdepositors
d)paymentstothegeneralcreditors
e)paymentstothedepositorsinadditiontothosespecifiedinclausea)andclauseb)ofsubsection
(2).

(8)Thecreditorsofeachdifferentclassreferredtoinsubsection(7)shallrankequallyamongthemselvesand
theyshallbepaidinfullwheretheassetsaresufficientsotodoandwheretheassetsareinsufficient,the
paymentsshallabateinequalproportion.

75.Restrictiononvoluntarywindingup.Notwithstandinganythingtothecontrarycontainedinsection203
oftheCompaniesAct,nobankingcompanywhichholdsalicencegrantedundersection31maybevoluntarily
woundupunlesstheBangladeshBankcertifiesinwritingthatthecompanyisabletopayinfullitsdebtstoits
creditorsandwithoutprejudicetotheprovisionscontainedinsection218and220oftheCompaniesAct,the
HighCourtDivisionshall,onapplicationoftheBangladeshBank,orderthewindingupofthecompanybythe
HighCourtDivisionifatanystateduringthevoluntarywindingupproceedingsthecompanyisnotabletopay
anyofitsdebts.

76.Restrictiononcompromiseorarrangementbetweenbankingcompaniesandcreditors.(1)
NotwithstandinganythingcontainedinanyotherActforthetimebeinginforce,theHighCourtDivisionshall
notsanctionanycompromiseorarrangementbetweenabankingcompanyanditscreditorsoranyclassofthem
orbetweensuchcompanyanditsmembersoranyclassofthem,oranyamendmentinsuchcompromiseor
arrangement,unlesstheBangladeshBankisoftheopinionthatthecompromise,arrangementorthe
amendmentsthereinarecapableofbeingworkedoutandarenotdetrimentaltotheinterestsofthedepositorsof
thebankingcompanyconcerned.
(2)Whereanapplicationundersection230oftheCompaniesActismadeinrespectofanybankingcompanyor
inrespectoftheconductofanyofitsdirectors,theHighCourtDivisionmaydirecttheBangladeshBankto
makeaninquiryinrelationtotheaffairsofthebankingcompanyandtheconductofitsdirectorsandwhensuch
adirectionisgiven,theBangladeshBankshallmakesuchinquiryandsubmititsreporttotheHighCourt
Division.

77.Moratoriuminrespectofabankingcompanyandreconstructionoramalgamationofbanking
companies.(1)Notwithstandinganythingcontainedintheforgoingprovisionsofthischapterorinanyother
Actoranyagreementoranyotherinstrument,forthetimebeinginforce,whereitappearstotheBangladesh
Bankthattherearereasonstomakeanorderofmoratoriuminrespectofabankingcompany,itmayapplytothe
Governementforthemakingofsuchorder.
(2)TheGovernment,afterconsideringandapprovinganapplicationmadeundersubsection(1),maymakean
orderofmoratoriumstayingthecommencementorcontinuanceofallactionsandlegalproceedingsagainstthe
company,includingthesuspensionofitsbusiness,forforafixedperiodoftimeandonsuchconditionsasit
thinksfit:
ProvidedthattheGovernmentmayextendtheperiodsohoweverthatthetotalperioddoesnotexceedsix
month.
(3)Exceptasotherwiseprovidedintheordermadeundersubsection(2)orinanydirectionmadebythe
Governmentthereafter,thebankingcompanyshallnot,thatorderbeinginforce,makeanypaymenttoany
depositorordischargeanyliabilitiesorobligationstoanyofitscreditors.
(4)Ifduringtheperiodtheordergivenundersubsection(1)isinforcetheBangladeshBankissatisfiedthatin
thepublicinterestorintheinterestofthedepositorsorinordertosecurethepropermanagementofthebanking
companyorintheinterestofthebankingsystemofthecountryasawholeitisnecessarysotodo,itmay
prepareaschemeforthereconstructionofthebankingcompany,orfortheamalgamationofthebanking
companywithanyotherbankinginstitution,henceforthinthischapterreferredtoasthetransfereebank.
(5)Theaforesaidschememaycontainalloranyofthefollowingitems,namely:

a)theconstitution,name,registration,procedure,capital,assets,power,rights,interests,authorities,
liabilities,dutiesandobligationsofthebankingcompanyonitsreconstructionor,asthecasemay
be,ofthetransfereebank
b)inthecaseofamalgamationofthebankingcompany,thetransfertothetransfereebankofthe
business,properties,assetsandliabilitiesofthebankingcompanyonsuchconditionsasare
specifiedinthescheme
c)anychangeintheBoardofDirectors,ortheappointmentofanewBoardofDirectors,ofthe
bankingcompanyonitsreconstructionor,asthecasemaybe,ofthetransfereebankandthe
authoritybywhom,themannerinwhich,andtheconditionsonwhich,suchchangeshallbemade
andinthecaseofappointmentofanewBoardofDirectors,theperiodforwhichsuchappointment
shallbemade
d)thealterationofthememorandumandthearticlesofassociationofthebankingcompanyonits
reconstructionor,asthecasemaybe,ofthetransfereebankforthepurposeofalteringthecapital
thereoforforsuchotherpurposesasmaybenecessarytogiveeffecttothereconstructionor
amalgamation
e)thecontinuationbyoragainstthebankingcompanyonitsreconstructionor,asthecasemaybe,
thetransfereebank,ofallactionsandproceedingsfiledbyoragainstthebankingcompany
concernedandpendingimmediatelybeforethedateoftheorderundersubsection(2)
f)thereductionoftheinterestorrightswhichthemembers,depositorsandotherdepositorsofthe
bankingcompanyhaveinoragainstthebankingcompanybeforeitsreconstructionor
amalgamationtosuchextentastheBangladeshBankconsidersnecessaryinthepublicinterestorin
theinterestsofthemembers,depositorsandothercreditorsofthebankingcompanyorforthe
maintenaceofthebusinessofthebankingcompany
g)paymentincashtodepositorsandothercreditorsinfullsatisfactionoftheirclaims

i)inrespectoftheirinterestorrightinoragainstthebankingcompanybeforeits
reconstructionoramalgamationor
ii)wheretheirinterestorrightsinoragainstthebankingcompanyhasorhavebeen
reducedunderclausef),inrespectofsuchinterestorrightassoreduced

h)theallotmentofsharesinthebankingcompanyonitsreconstructionor,asthecasemaybe,in
thetransfereebanktothemembersofthebankingcompanyforallthesharesofthebanking
companyheldbythembeforeitsreconstructionoramalgamationorwherehasbeenmadea
reductioninaccordancewithclausef),forthosereducedsharesandwhereitisnotpossibletoallot
sharestoanymember,thepaymentincashtothosemembersinfullsatisfactionoftheirclaims

i)inrespectoftheirpresentinterestinsharesinthebankingcompanybeforeits
reconstructionoramalgamationor
ii)wheresuchinteresthasbeenreducedunderclausef),inrespectoftheirinterestin
thosereducedshares

i)thecontinuanceoftheservicesofalltheemployeesofthebankingcompanyinthebanking
companyitselfor,asthecasemaybe,inthetransfereebankatthesameremunerationandonthe
sameconditions,whichtheyweregettingorunderwhichtheywereemployedimmediatelybefore
anorderundersubsection(2)hasbeengiven:
Providedthatbeforetheexpiryoftheperiodofthreeyearsfromthedateonwhichaschemeunder
thissectionissanctionedbytheGovernment

i)thebankingcompanyonitsreconstructionshallpayorgranttoitsemployeesthe
sameremunerationandthesamebenefitsasare,atthetimeofsuchpaymentsorgrants,
applicabletoemployeesofcorrespondingrankofacomparablebankingcompany,and
inrespectofdeterminingwhetherbankingcompaniesarecomparableorwhether
employeesareholdingcorrespondingranksthedecisionoftheBangladeshBankshall
befinal
ii)thetransfereebankshallpayorgranttotheemployeesoftheformerbanking
companythesameremunerationandthesamebenefitsasareapplicabletoitsown
employeesofcorrespondingranksubjecttothequalificationsandexperienceofthe
saidemployeesbeingcomparabletothoseofitsownemployees,andifanydoubtor
differencearrisesastoqualification,experienceorrank,thatdoubtordifferenceshall,
beforetheexpiryofthreemonthsfromthedateofdeterminingtheremunerationand
otherbenefits,bereferredtotheBangladeshBankwhosedecisionthereonshallbe
final

j)notwithstandinganythingcontainedinclausei),whereanyoftheemployeesarespecifically
mentionedinthescheme,orwhereanyoftheemployeeshave,atanytimebeforetheexpiryofone
monthfollowingthedateonwhichtheschemeissanctionedbytheGovernment,expressedtheir
intentionofnotbecomingemployeesofthebankingcompanyonitsreconstructionorthetransferee
bank,thepaymenttosuchemployeesofcompensation,pension,gratuityandotherretirement
benefitsadmissibletotheminaccordancewiththedecisionsofthebankingcompanyorthepresent
rulesconnectedtherewithimmediatelybeforethedateonwhichanorderundersubsection(2)has
beengiven
k)anyotherconditionsforthereconstructionoramalgamationofthebankingcompany
l)incidental,consequentialandsupplementalmattersrequiredtocarryouttherecconstructionor
amalgamation.

(6)AcopyoftheschemepreparedbytheBangladeshBankunderthissectionforthepurposeofan
amalgamationshallbesentindrafttothebankingcompany,thetransfereebankandanyotherbanking
companyconcerned,forsuggestionsandobjectionswithinsuchperiodastheBangladeshBankmayspecifyfor
thispurpose.
(7)TheBangladeshBankmaymakesuchmodificationsinthedraftschemeasitmayconsidernecessaryafter
consideringthesuggestionsandobjectionsreceivedinthelightoftheinvitationundersubsection(6).
(8)TheBangladeshBankshall,afterproceedinginaccordancewithsubsection(6)and(7),placethescheme
beforetheGovernmentforitssanction,andtheGovernmentshallsanctiontheschemewithoutany
modificationsorwithsuchmodificationsasitmayconsidernecessaryandtheschemeassanctionedbythe
GovernmentshallcomeintoforceonsuchdateastheGovernmentmayspecifyonthisbehalf:
Providedthatdifferentdatesmaybespecifiedforthecommencementofdifferentprovisions.
(9)Uponthecomingintoforceoftheschemeoranyprovisionthereof,theschemeorsuchprovisionshallbe
bindingonanyofthefollowingpersonsandinstitutions,namely:

a)thebankingcompany,thetransfereebankandanyotherbankingcompanyconcernedwiththe
amalgamation
b)themembers,depositorsandothercreditorsofthecompanyorbank
c)thesaidcompanyandtheemployeesofthebank
d)anytrusteeinvolvedinthemanagementofanyretirementfundoranyotherfund,keptbythe
saidcompanyorbankoranypersonhavinganyrightorliabilityinrelationtothatcompanyor
bank.

(10)Theproperties,assetsandliabilitiesofthebankingcompanyshall,fromthedateonwhichthescheme
comesintoforce,betransferredtoand,tosuchextentasmaybestatedinthescheme,bevestedinthetransferee
bankandthoseproperties,assetsandliabilitiesshallbeproperties,assetsandliabilitiesofthetransfereebank.
(11)Ifanydifficultyarisesingivingeffecttotheprovisionsofthescheme,theGovernmentmaybyorderdo
anythingnotinconsistentwithsuchprovisionswhichappearstoitnecessaryforthepurposeofremovingthat
difficulty.
(12)CopiesofanyschemeapprovedbytheGovernmentoranyordermadeundersubsection(11)shallbelaid
beforetheParliament,assoonasmaybe,afterhavingbeenapprovedormade.
(13)Whereaschemeforamalgamationofabankingcompanyunderthissectionhasbeenapproved,any
businessacquiredbythetransfereebankundertheschemeorunderanyprovisionthereofshall,aftercoming
intooperationoftheschemeorsuchprovision,becarriedoninaccordancewiththelawgoverningtheactivities
ofthetransfereebank:
Providedthat,inordertogivefullforcetothescheme,theGovernmentmay,ontherecommendationofthe
BangladeshBank,bynotificationintheofficialGazette,exemptforaperiodofnomorethansevenyearsthat
businessfromtheapplicationofanyprovisionofthatlaw.
(14)Nothinginthissectionshallpreventtheamalgamationbyasingleschemeofseveralbankingcompaniesin
respectofeachofwhichanorderofmoratoriumhasbeenmade.
(15)Theprovisionsofthissectionandofanyschememadeunderitshallhaveeffectnotwithstandinganything
containedinanyotherprovisionofthisActoranyotherActoranyagreementoranyotherkindofinstrument
forthetimebeinginforce.

Chapterseven
Speedydisposalofwindingupproceedings

78.ChapterseventooverrideotherActs.Theprovisionsofthischapterandtherulesmadethereundershall
haveeffectnotwithstandinganythingcontainedintheCompaniesActoranyotherActforthetimebeingin
forceorinanyinstrumentmadeinaccordancewith,orhavingeffectunderthepowersgivenbyanyotherAct.
ButtheprovisionsofthatActorofanyotherActorinstrumentshallapplytoallproceedingsunderthischapter
oranyrulemadethereunderinsofarthattheyarenotvariedby,orinconsistentwith,thischapterortherules
madethereunder.

79.PoweroftheHighCourtDivisiontodecideallclaimsinrespectofbankingcompanies.TheHigh
CourtDivisionshall,saveasotherwiseexpresslyprovidedinsection80,consideranddecideanyofthe
followingsubjects,whethertheyarisebeforeorafterthedateoftheorderforthewindingupofabanking
companyorbeforeorafterthecommencementofthisAct,namely

a)claimsmadebyoragainstabankingcompanywhichisbeingwoundupincludingitsbranchesin
Bangladesh
b)anyapplicationsubmittedundersection153oftheCompaniesActbyoragainstabanking
companywhichisbeingwoundup
c)anyquestionofprioritiesoranyotherquestion,oflaworoffact,whichmayrelatetoabanking
companywhichisbeingwounduporariseinthecourseofaproceedingforthewindingupofa
bankingcompany.

80.Transferofpendingsuits.(1)Whereawindinguporderhasbeenmadeinrespectofabankingcompany,
noproceedingorsuitfiledbyoragainstthebankingcompanyimmediatelybeforethecommencementofthis
Actorbeforethedateofthewindinguporderwheretheorderhasbeenmadeaftersuchcommencementshall,if
inrespectofthatsuitorproceedingtheHighCourtDivisionhasexclusivejurisdictionunderthisAct,be
proceededwithexceptinthemannerhereinafterprovided.
(2)Theofficialliquidatorshall,withinthreemonthsfromthedateofthewindinguporderorthe
commencementofthisAct,whicheverislater,orsuchfurthertimeastheHighCourtDivisionmayallow,
submittotheHighCourtDivisionareportregardingthependingsuitsorproceedingsreferredtoinsubsection
(1)togetherwithadetaileddescriptionthereof.
(3)Onreceiptofareportundersubsection(2),theHighCourtDivisionmay,ifitsothinksfit,givetheparties
concernedanopportunitytoshowcausewhythependingsuitsorproceedingsshouldnotbetransferredtoitself
andaftermakinganinquiryinsuchmannerasmaybeprovidedbytherulesmadeundersection97,itmaygive
ordertotransferthosesuitsorproceedingstoitself,andwheresuchorderhasbeengiven,thetransferredsuitsor
proceedingsshallbedisposedbytheHighCourtDivision.
(4)Ifanypendingsuitorproceedingisnottransferredundersubsection(3),suchsuitorproceedingshallbe
disposedofinthecourtinwhichitwaspending.

81.Listofthedebtors.(1)NotwithstandinganythingcontainedinanyotherActforthetimebeinginforce,
theHighCourtDivisionmaysettleinthemannerhereinafterprovidedalistofthedebtorsofabanking
companywhichisbeingwoundup.
(2)Subjecttotherulesmadeundersection120,theofficialliquidatorshall,withinsixmonthfromthedateof
thewindinguporderorthecommencementofthisAct,whicheverislater,orwithinsuchfurthertimeasthe
HighCourtDivisionmayallow,fromtimetotime,submittotheHighCourtDivisionlistsofthesaiddebtors
containingsuchparticularsasarespecifiedinthesecondschedule.
(3)Onreceiptofalistsubmittedundersubsection(2),theHighCourtDivisionshall,wherevernecessary,pass
noticesoneverypersonaffectedbythelist,andaftermakinganinquiryinaccordancewiththerulesmadeunder
section97,itshallsettlethelistofthedebtorscompletelyorpartially.
(4)Atthetimeofthesettlementofanysuchlist,theHighCourtDivisionshallpassanorderforthepaymentof
theamountduetoeachdebtorandshallprovideanyotherreliefincludingreliefsclaimedagainstguarantorsand
shallpassotherordersrequiredtorealisesecurities.
(5)Everyorderpassedundersubsection(4)shall,subjecttotheprovisionsforappealagainstthatorder,befinal
withregardtothebankingcompanyandthepersonagainstwhomtheorderispassedandallpersonsclaiming
throughorunderthatperson,andshallbedeemedtobeadecreeinasuit.
(6)Inrespectofeveryorderpassedundersubsection(4),theHighCourtDivisionshallissueacertificate,
whichshallbedeemedtobeacertifiedcopyforallpurposesincludingexecutionandthereinthefollowing
subjectsshallbereferredto,namely:

a)thereliefsgranted
b)namesandotherdescriptionsofthepartiesagainstwhomsuchreliefshavebeengranted
c)theamountofthecostsawarded
d)bywhom,andoutofwhatfundsandinwhatproportionsuchcostsaretobepaid.

(7)Atthetimeofsettlingthelistofdebtorsoratanyothertimepriororsubsequentthereto,theHighCourt
Divisionshallhavethefollowingpowers,namely:

a)topassanyorderinrespectofadebtorontheapplicationoftheofficialliquidatorforthe
realisation,management,protectionandsaleofanypropertygivenassecuritytothebanking
company
b)togivetotheofficialliquidatorallthepowersrequiredtogiveeffecttotheorderreferredtoin
clausea).

(8)TheHighCourtDivisionmaysanctionanycompromiseinrespectofanydebtanditmayorderthepayment
ofanydebtbyinstalments.
(9)Incasethatalistofdebtorsissettledexparteintheabsenceofanyperson,suchpersonmay,withinthirty
daysfromthedateoftheordersettlingthelist,appealtotheHighCourtDivisionformodificationofthoseparts
ofthelistasareconcerninghimandiftheHighCourtDivisionissatisfiedthathewaspreventedbyany
sufficientcausefromappearingonthedatefixedforthesettlementofthelistandthathehasadequatereasonsto
defendhimselfagainsttheclaimofthebankingcompany,itmaymodifythesaidlistandpasssuchordersin
relationtheretoasitthinksfit:
ProvidedthattheHighCourtDivisionmay,ifitsothinksfit,entertainanyapplicationevenaftertheexpiryof
thesaidperiodofthirtydays.
(10)Nothinginthissectionshall

a)applytoadebtwhichhasbeensecuredbyamortgageofimmovablepropertyandinwhicha
thirdpartyisinterestedor
b)prejudicetherightsoftheofficialliquidatortorecoveranydebtduetoabankingcompanyunder
anyotherActforthetimebeinginforce.

82.Specialprovisionstomakecallsoncontributaries.Notwithstandingthatthelistofthecontributarieshas
notbeensettledundersection184oftheCompaniesAct,theHighCourtDivisionmay,ifitappearsnecessaryor
expedienttoitsotodo,atanytimeaftermakingawindinguporder,makeacallonandorderpaymentofthe
amountduebyanycontributorwhohasbeenplacedonthelistofcontributoriesbytheofficialliquidatorand
whohasnotappearedtopresentastatementagainsthisbeingincludedinthelist.

83.Documentsofbankingcompanytobeevidence.(1)Entriesinthebooksofaccountorotherdocuments
ofabankingcompanywhichisbeingwoundupshallbeadmittedinevidenceinallproceedingsbyoragainst
thebankingcompany.
(2)Allentriescontainedintheaccountbooksorotherdocumentsofabankingcompanymaybeprovedby
productionofthoseaccountbooksanddocumentsorcopiesthereof:
Providedthat,inthecaseofprovingsuchcopies,theofficialliquidatorshallconfirmthatthecopiesaretrue
copiesoftheoriginalentriesandthattheentriesarecontainedintheaccountbooksorotherdocumentsofthe
bankingcompanyinhispossession.
(3)NotwithstandinganythingtothecontrarycontainedintheEvidenceAct,1872(ActIof1872),allsuch
entriesintheaccountbooksorotherdocumentsofabankingcompanyshallasagainstthedirectorsofthe
bankingcompanyinrespectofwhichthewindinguporderhasbeenmadebeforethecommencementofthis
Act,beprimafacieevidenceofthetruthinallmattersconnectedtherewith.

84.Examinationofdirectorsandauditofaccounts.(1)Whereanorderhasbeenmadeforthewindingupof
abankingcompany,theofficialliquidatorshallsubmittotheHighCourtDivisionareportwhetherinhis
opinionanylosshasbeencausedtothebankingcompanysinceitsformationbyanyactoromissionofany
personinvolvedinitsformationorofanyofitsdirectorsorauditors.
(2)If,onconsiderationofthereportsubmittedundersubsection(1),theHighCourtDivisionisofopinionthat
anypersonwhohastakenpartinthepromotionorformationofthebankingcompanyorhasbeenadirectoror
anauditorofthebankingcompanyshouldbepubliclyexamined,itshallholdapublicsittingonadateitshall
determineforthatpurposeanditshalldirectthatsuchperson,directororauditorshallattendthatsittingand
shallbeexaminedastotheformation,promotionandmanagementofthebankingcompanyandastohis
activitiesinconnectiontherewith:
Providedthatnosuchpersonshallbeexaminedunlesshehasbeengivenanopportunitytoshowcausewhyhe
shouldnotbesoexamined.
(3)Theofficialliquidatormaytakepartinsuchexaminationandhemay,ifauthorizedinthisbehalfbytheHigh
CourtDivision,employanylegalexpertapprovedbythesaidDivision.
(4)Anycreditororcontributormaytakepartinthesaidexaminationeitherpersonallyorbyanypersonentitled
toappearbeforetheHighCourtDivision.
(5)Theexaminationofanypersonunderthissectionshallbeanexaminationonoathandthepersonexamined
shallanswerallsuchquestionsastheHighCourtDivisionmayputorallowtobeputtohim.
(6)Apersonorderedtobeexaminedunderthissectionmay,athisowncost,employanypersonentitledto
appearbeforetheHighCourtDivisionandtheemployedpersonmayputtothepersonexposedtothe
examinationsuchquestionsastheHighCourtDivisionmaydeemjustforthepurposeofexplaininganyanswer
givenbythepersonexamined:
Providedthatifthepersontobeexaminedis,ontheopinionoftheHighCourtDivision,exculpatedfromany
chargesmadeorsuggestedagainsthim,theHighCourtDivisionmayallowhimsuchcostsasitthinksfit.
(7)Notesoftheexaminationshallbetakendowninwriting,andshallbereadovertoorby,andsignedby,the
personexamined,andsuchnotes
a)maybeusedinevidenceagainsthiminanyproceeding,civilorcriminal
b)shallbeopentotheinspectionorcopyingofanycreditororcontributoryatallreasonabletimes.

(8)WheretheHighCourtDivision,onexaminationofthenotesobtainedbysuchexamination,whetherafraud
hasbeencommittedornot,isofopinionthat

a)apersonwhohasbeenadirectorofthebankingcompanyisnotfittobeadirectorofacompany
b)apersonwhohasbeenanauditorofabankingcompanyorapartneroffirmactingassuch
auditorisnotfittoactasanauditorofacompanyortobepartnerofafirmactingassuchauditor

theHighCourtDivisionmaymakeanorderthatthatpersonshallnot,withouttheleaveoftheHighCourt
Division,forsuchperiodasmaybedeterminedintheorderwhichshall,however,notexceedfiveyears,

i)beadirectorofanycompanyor
ii)inanyway,directlyorindirectly,beconcernedortakepartinthemanagementof
anycompanyor
iii)actasanauditorofanycompany,orbepartnerofafirmactingassuchauditor.

85.Specialprovisionsfordelinquentdirectorsetc..(1)Whereanapplicationismadebyabankingcompany
totheHighCourtDivisionundersection235oftheCompaniesActagainstanyofitspromoters,directors,
managers,liquidatorsorofficersforrestorationofanymoneyorpropertyandtheapplicantmakesoutaprima
faciecaseagainstsuchperson,thesaidDivisionshallmakeanorderagainstthatpersontorestoretheclaimed
moneyorpropertyunlessheprovesthatheisnotliabletomaketherestauration:
Providedthatwheresuchanorderismadejointlyagainsttwoormorepersons,theyshallbejointlyand
severallyliabletomaketherestorationofthepropertyormoney.
(2)WhereanapplicationismadetotheHighCourtDivisionundersection235oftheCompaniesActandthe
saidDivisionhasreasontobelievethatapropertybelongstoanypromoter,director,manager,liquidatoror
officerofthebankingcompany,whetherthepropertystandsinthenameofsuchpersonorofanyotherperson
astheostensibleowner,thesaidDivisionmayatanytime,whetherbeforeoraftermakinganorderundersub
section(1),directtheattachmentofsuchpropertyorofsuchportionthereofasthesaidDivisionmaythinkfit
andwhenthepropertysoattachedstandsinthenameofanostensibleowner,itshallremainattachedumlessthe
ostensibleownercanprovetothesatisfactionofthesaidDivisionthatheistherealownerandtheprovisionsof
theCodeofCivilProcedure,1908(ActVof1908)relatingtoattachmentofpropertyshall,asfarasmaybe
required,applyinthecaseofsuchattachment.

86.Dutyofdirectorsandofficersofbankingcompaniestoassistintherealisationofpropertyetc..Every
directororofficerofabankingcompanywhichisbeingwoundupshallgivesuchassistancetotheofficial
liquidatorashemayrequireinconnectionwiththerealisationanddistributionofthepropertyofthebanking
company.

87.Specialprovisionsforpunishingoffencesinrelationtobankingcompaniesbeingwoundup.(1)Where
achargeforanoffencepunishableundertheCompaniesActorunderthisActisbroughtagainstanypersonwho
hastakenpartinthepromotionorformationofthebankingcompanywhichisbeingwounduporagainstany
director,managerorofficerthereof,theHighCourtDivisionmay,ifitthinksfit,takecognizanceofandtryina
summarywaythatcharge.
(2)Whentryinganyoffenceundersubsection(1),theHighCourtDivisionmayalsotryanyotheroffencenot
referredtointhatsubsectionwhichisanoffencewithwhichtheaccusedmay,undertheCodeofCriminal
Procedure,1898(ActVof1898),bechargedatthesametrial.
(3)Inanycasetriedsummarilyundersubsection(1),

a)theHighCourtDivision

i)neednotsummonanywitness,ifitissatisfiedthattheevidenceofsuchwitnesswill
notbematerial
ii)shallnotbeboundtoadjournatrialunlesssuchadjourmentis,intheopinionofthe
HigthCourtDivision,necessaryintheinterestsofjustice
iii)shall,beforepassinganysentence,recordinitsjudgementthesubstanceofthe
evidenceandtheparticularsreferredtoinsection263oftheCodeofCriminal
Procedure,1898(ActVof1898)insofarastheyareapplicable.

b)theprovisionofsubsection(2)ofsection262oftheCodeofCriminalProcedure,1898(ActV
of1898)shallnotapplytoanysuchtrial.

(4)AlloffencesunderthisActortheCompaniesActinrelationtowindingupallegedtohavebeencommitted
byanypersonspecifiedinsubsection(1)andwhicharenottriedinasummarywayundersubsection(1)shall,
notwithstandinganythingcontainedinthatActortheCodeofCriminalProcedure,1898(ActVof1898)orin
anyotherActforthetimebeinginforce,betakencognizanceofandtriedbyaJudgeoftheHighCourtDivision
otherthantheJudgedealingwiththeproceedingforthewindingupofthebankingcompany.
(5)NotwithstandinganythingcontainedintheCodeofCriminalProcedure,1898(ActVof1898),theHigh
CourtDivisionmaytakecognizanceofanyoffenceunderthisActwithouttheaccusedbeingcommittedtoitfor
trial.

88.Publicexaminationofdirectorsetc.ofbankingcompaniesincertaincases.(1)Whereanapplicationfor
sanctioningacompromiseoranyotherarrangementinrespectofabankingcompanyismadeundersection153
oftheCompaniesActorwheresuchsanctionhasbeengivenandtheHighCourtDivisionisofopinion,whether
onareportoftheBangladeshBankorotherwise,thatanypersonwhohastakenpartinthepromotionor
formationofthatbankingcompanyorisorhasbeenadirectororauditorthereofshouldbepubliclyexamined,
thatDivisionmaydirectsuchexaminationofthatpersonandtheprovisionsofsection84shall,asfarasmay
be,applytosuchbankingcompanyastheyapplytoabankingcompanywhichisbeingwoundup.
(2)Whereacompromiseorarrangementissanctionedundersection153oftheCompaniesActinrespectofa
bankingcompany,theprovisionsofsection135ofthatActandofsection85ofthisActshall,asfarasmaybe,
applytosuchbankingcompanyastheyapplytoabankingcompanywhichisbeingwoundupasiftheorder
sanctioningthecompromiseorarrangementwereanorderforthewindingupofthatbankingcompany.
(3)Whereaschemeofreconstructionoramalgamationofabankingcompanyhasbeensanctionedbythe
Governmentundersection77andtheGovernmentisofopinionthatanypersonwhohastakenpartinthe
promotionorformationofabankingcompanyorisorhasbeenadirectororauditorthereofshouldbepublicly
examined,theGovernmentmayapplytotheHighCourtDivisionfortheexaminationofsuchpersonandifon
suchexaminationtheHighCourtDivisioncomestotheconclusion,whetherthatpersonhascommittedafraud
ornot,thatthatpersonisnotfittobeadirectorofacompanyortoactasanauditorofacompanyortobea
partnerofafirmactingasanauditor,theGovernmentshallmakeanorderthatthatpersonshallnot,withoutthe
leaveoftheGovernment,beadirectorof,orinanyway,whetherdirectlyorindirectly,beconcernedortakepart
inthemanagementofacompanyoractasanauditorof,orbeapartnerofafirmactingasauditor,ofany
companyforsuchperiodnotexceedingfiveyearsasmaybespecifiedintheorder.
(4)WhereareconstructionoramalgamationofabankingcompanyhasbeensanctionedbytheGovernment
undersection77,theprovisionsofsection235oftheCompaniesActandofsection85ofthisActshall,asfaras
maybe,applytothatbankingcompanyastheyapplytoabankingcompanywhichisbeingwoundupasifthe
ordersanctioningthereconstructionoramalgamationwereanorderforthewindingupofthebankingcompany
andanyapplicationoftheofficialliquidatorreferredtointhesaidsection235shallbeconstruedasan
applicationoftheGovernment.

89.Specialprovisionsforbankingcompaniesworkingunderschemesorarrangementsatthe
commencementoftheAct.Whereanycompromiseorarrangementinrespectofabankingcompanyunder
section153oftheCompaniesActisbeingworkedatthecommencementofthisAct,theHighCourtDivision
may,ontheapplicationofsuchbankingcompany,

a)excuseanydelayincarryingoutanyoftheprovisionsofthecompromiseorarrangementor
b)allowthebankingcompanytosettlethelistofitsdebtorsinaccordancewiththeprovisionsof
section81andinsuchacasetheprovisionsofthesaidsectionshall,asfarasmaybe,applytothe
bankingcompanyastheyapplytoabankingcompanywhichisbeingwoundupasiftheorderfor
thecompromiseorarrangementwereanorderforthewindingupofthebankingcompany.

90.Appeals.(1)AnappealshallliefromanyorderordecisionoftheHighCourtDivisionwiththeAppeal
DivisionwhenthevalueofthesubjectmatteroftheclaiminacivilproceedingunderthisActexceedsfifty
thousandTakas.
(2)TheHighCourtDivisionmaybyrulesprovideforanappealagainstanyordermadeundersection87and
theconditionssubjecttowhichanysuchappealwouldlie.
(3)NotwithstandinganythingcontainedinanyotherActforthetimebeinginforceandsubjecttotheprovisions
ofsubsection(1)and(2),everyorderordecisionoftheHighCourtDivisionshallbefinalandbindingforthe
bankingcompanyandallotherpartiesconcernedandallpersonsclaimingthroughorunderthem.

91.Specialperiodoflimitation.(1)NotwithstandinganythingcontainedintheLimitationAct,1908(IXof
1908)orinanyotherActforthetimebeinginforce,incomputingtheperiodoflimitationforasuitor
applicationbyabankingcompanywhichisbeingwoundup,theperiodcommencingfromthedateofthe
presentationoftheapplicationforthewindingupofthebankingcompanyshallbeexcluded.
(2)NotwithstandinganythingcontainedintheLimitationAct,1908(IXof1908)orintheCompaniesActorin
anyotherActforthetimebeinginforce,thereshallbenoperiodoflimitationfortherecoveryofarrearsof
sharesfromanydirectorofabankingcompanywhichisbeingwounduporfortheenforcementbythebanking
companyagainstanyofitsdirectorsofanyclaimbasedonacontract,expressorimpliedandinrespectofall
otherclaimsofanycompanyagainstitsdirectors,theperiodoflimitationshallbetwelveyearsfromthedateof
theaccrualofsuchclaimsorfiveyearsfromthedateofthefirstappointmentoftheliquidator,whicheveris
longer.
(3)Theprovisionsofthissection,insofarastheyrelatetobankingcompaniesbeingwoundup,shallalsoapply
toabankingcompanyinrespectofwhichapetitionforthewindinguphasbeenpresentedbeforethe
commencementofthisAct.

92.BangladeshBanktotenderadviceinwindingupproceedings.Whereinanyproceedingforthewinding
upofabankingcompanyinwhichanypersonotherthantheBangladeshBankhasbeenappointedastheofficial
liquidatorandtheHighCourtDivisionhasdirectedtheofficialliquidatortoobtaintheadviceoftheBangladesh
Bankonanymatterinthatproceeding,theBangladeshBankmayexaminetherecordofthatproceedingand
tenderadviceonthematter.

93.Powertoinspect.(1)TheBangladeshBankmay,onbeingdirectedsotodobytheGovernmentortheHigh
CourtDivision,causetheinspectionbyitsofficersofabankingcompanywhichisbeingwoundupintotalorof
thebalancesofanyofitsbooksandaccounts.
(2)Afteraninspectionundersubsection(1),theBangladeshBankshallsubmitareportofthatinspectiontothe
Governmentor,asthecasemaybe,totheHighCourtDivision.
(3)IftheGovernment,onconsiderationofthereportoftheBangladeshBank,isofopinionthattherehasbeena
substantialirregularityinthewindingupproceedings,itmaybringsuchirregularitytothenoticeoftheHigh
CourtDivisionforsuchactianastheHighCourtDivisionmaythinkfit.
(4)OnreceiptofthereportoftheBangladeshBankundersubsection(2)oronanyirregularitybeingbroughtto
itsnoticeundersubsection(3)theHighCourtDivisionmay,ifitdeemsfit,aftergivingnoticetoandhearing
theGovernmentinregardtothatreport,givedirections.

94.Powertocallforreturnsandinformations.TheBangladeshBankmay,atanytimebynoticeinwriting,
requiretheliquidatorofabankingcompanytofurnishit,withinsuchtimeasmaybespecifiedinthenoticeor
suchfurthertimeastheBangladeshBankmayallow,anystatementorinformationrelatingtothewindingupof
thebankingcompanyanditshallbedutyoftheliquidatortocomplywithsuchrequirements.
Explanation.Forthepurposesofthissectionandsection93,abankingcompanyworkingunderacompromise
oranarrangementbutprohibitedfromreceivingfreshdeposits,shall,asfarasmaybe,bedeemedtobea
bankingcompanywhichisbeingwoundup.

95.DistrictMagistratetoassistliquidatorintakingchargeofpropertyofbankingcompaniesbeing
woundup.(1)IftheofficialliquidatororaspecialofficerappointedunderthisActdeemsitnecessary,inthe
interestofspeedyliquidationofabankingcompanytobewoundup,totakeintohiscustodyorunderhiscontrol
allproperty,effectandactionableclaimstowhichthatbankingcompanyisorappearstobeentitled,hemay
requestinwritingtheDistrictMagistrate,withinwhosejurisdictionsuchproperty,effects,claimsoraccount
booksorotherdocumentsofthatcompanymaybesituatedorbefound,totakepossessionthererofandthe
DistrictMagistrateshall,onsuchrequestbeingmadetohim,takepossessionofsuchproperty,effects,claims,
accountbooksandotherdocumentsandforwardthemtothosewhomadetherequestion.
(2)Forthepurposeofsecuringcompliancewithsubsection(1).theDistrictMagistratemaytakeorcausetobe
takensuchstepsanduseorcausetobeusedsuchforceasmay,inhisopinion,benecassary.

96.EnforcementofordersanddecisionsofHighCourtDivision.(1)Allordersordecisionsmadeinany
civilproceedingunderthisActbytheHighCourtDivisionshallbeenforcedinthesamemannerinwhich
decreesandordersmadebytheHighCourtDivisionincivilproceedingsareenforced.
(2)NotwithstandinganythingcontainedintheCodeofCivilProcedure,1908(ActVof1908),aliquidatormay
applyfortheexecutionofadecreebyaCourtotherthantheonewhichmadeit,onproductionofacertificateof
grantedundersubsection(6)ofsection81andonhiscertifyinginwritingtheamountremainingduein
accordancewiththatdecreeorthereliefbeingapprovedbutremainingunenforcedunderthatdecree.
(3)Withoutprejudicetotheprovisionsofsubsection(1)or(2),anyamountduebyanorderordecisionofthe
HighCourtDivisionmay,withtheleaveoftheHighCourtDivision,berecoveredinthesamemannerasan
arrearoflandrevenue.

97.PoweroftheHighCourtDivisiontomakerules.TheHighCourtDivisionmaymakerulesconsistent
withtheotherprovisionsofthisActandwiththerulesmadeundersection121forthepurposeofsettlingthe
followingsubjects,namely:

a)themannerinwhichinquiriesandproceedingsunderChapter6and7areheld
b)theoffenceswhichmaybetriedsummarily
c)theconditionssubjecttowhichappealsmaybepreferredandthemannerinwhichappealsmay
befiledandheard
d)anyothermatterforwhichprovisionhastobemadeforenablingtheHighCourtDivisionto
effectivelyexerciseitsfunctionsunderthisAct.

98.Referencestodirectorsetc.shallbeconstruedascontainingreferencestopastdirectorsetc..Forthe
removalofdoubtsitisherebydeclaredthatanyreferenceinthisChaptertoadirector,manager,liquidator,
officerorauditorofabankingcompanyshallbeconstruedasincludingareferencetoanypastorpresent
director,manager,liquidator,officerorauditorofthebankingcompany.

99.Chapter2nottoapplytobankingcompaniesbeingwoundup.NothingcontainedinChapter2shall
applytoabankingcompanywhichisbeingwoundup.

100.Validationofcertainproceedings.Notwithstandinganythingcontainedinsection79oranyother
provisionofthisChapter,noproceedingheldat,andnodecreeorordermadebeforethecommencementofthis
Act,byanyCourtotherthantheHighCourtDivisioninrespectofanymatteroverwhichthatDivisionhas
jurisdictionunderthisActshallbeinvalidordeemedtobeinvalidmerelybyreasonofthefactthatsuch
proceedinghasbeenheldat,orsuchdecreeororderhasbeenmadebyaCourtotherthantheHighCourt
Division.

101.PoweroftheGovernmenttomakerulesonthepreservationofrecords.TheGovernmentmay,after
consultationwiththeBangladeshBankandbynotificationintheofficialGazette,makerulesspecifyingthe
periodforwhichtheaccountbooks,documentsregardingpaidclaimsandotherdocumentsofabanking
companyaretobepreserved.

102.Documentsregardingpaidclaimstobegivenbacktocustomers.(1)Whereabankingcompanyis
requested,beforetheexpiryoftheperioddeterminedbyruleundersection101,byoneofitscustomerstogive
backhisdocumentsregardingpaidclaims,itshallkeepwithitexactandcompletecopiesofthosedocuments,
madeinsuchaway,mechanicallyorotherwise,astoensuretheexactnessofthecopies.
(2)Thebankingcompanymayrealizethecostsformakingthecopiesreferredtoundersubsection(1),fromthe
customers.
Explanation.Forthepurposeofthissection,"customer"shallincludeanyofficialofficeorbodycorporate.

103.Choiceforthepaymentofdepositedmoney.(1)Whereanindividualhas,orseveralpersonshavejointly
depositedmoneywithabankingcompanyinhisorintheirname,thatindividualdepositormayseparatelyor,as
thecasemaybe,thegroupofdepositorsmayjointly,inthewayprescribed,chooseapersontowhich,inthe
caseofthedeathoftheindividualdepositororofallofthejointdepositors,thedepositedmoneyshallbegiven:
Providedthatthesaidindividualdepositororthesaidgroupofdepositorsmayatanytimecanceltheirchoice
andchoose,inthewayprescribed,anotherperson.
(2)Thepersonchosenundersubsection(1)beingaminor,theindividualdepositororthejointdepositorsmay,
intheprescribedway,directwhoshall,inthecaseofthedeathoftheindividualdepositorsorofthejoint
depositors,receivethemoneyduringtheperiodofminorityofthechosenperson.
(3)NotwithstandinganythingcontainedinanyActforthetimebeinginforceorinanywilloranykindof
documentregardingtheallotmentofproperties,thepersonchosenundersubsection(1)ordirectedundersub
section(2)shall,afterthedeathoftheindividualdepositororasthecasemaybe,ofallofthejointdepositors,
attainalltherightstheindividualdepositororthejointdepositorshadonthatdeposit,andeveryotherperson
shallbedeprivedofthoserights.
(4)Whereabankingcompanyhasmadepaymentsinaccordancewiththissection,allitsobligationsinrespect
ofthedepositconcernedshallbedeemedfulfilled:
Providedthatnorightorclaimthatanypersonmayhaveormakeagainstthepersontowhomthedeposited
moneyhasbeenpaidunderthissectionshallbeprejudicialtotheprovisionofthissubsection.

104.Unacceptabilityofclaimsofotherpersonsondeposits.Noticesofclaimsondepositsbypersonsother
thanthoseinthenameofwhichthedepositsarekeptwiththebankingcompanyshallnotbeacceptableforthat
company,norshallthatcompanybeboundtotakemeasuresinaccordancewithanysuchnotice:
Providedthatnothingcontainedinthissubsectionshallbeprejudicialtotheauthorityofanycourthaving
jurisdictiononthesaiddepositsandthecompanyshallgiveadequateimportancetoanydecree,order,
certificateoranyothersuchdocumentthecourtmaysubmit.

105.Choiceforgivingbacksafekeptarticles.(1)Anypersonhavingdepositedforsafekeepingarticleswitha
bankingcompanymay,inthewayprescribed,chooseapersontowhich,afterhisdeath,thesaidarticles,aslong
astheyaredeposited,shallbegiven:
Providedthatthedepositormayatanytimecancelhischoiceandchoose,inthewayprescribed,anotherperson.
(2)Thepersonchosenundersubsection(1)beingaminor,thedepositormay,inthewayprescribed,directwho
shall,inthecaseofhisdeath,receivethesaidarticlesduringtheperiodofminorityofthechosenperson.
(3)Beforegivingbackthedepositedarticlestoanypersonchosenordirectedundersubsection(1)or(2),the
bankingcompanywhichhastakenthedepositshall,inthewayprescribedfromtimetotimebytheBangladesh
Bank,preparealistcontainingdescriptionsofthosearticles,takethesignatureofthesaidpersonandsenda
copythereoftohim.
(4)NotwithstandinganythingcontainedinanyActforthetimebeinginforceorinanywilloranyotherkindof
documentregardingtheallotmentofproperties,thepersonchosenundersubsection(1)ordirectedundersub
section(2)shall,afterthedeathofthedepositor,attainalltherightsthedepositorhadonthatdeposit,andevery
otherpersonshallbedeprivedofthoserights.
(5)Whereabankingcompanyhasinaccordancewiththeprovisionsofthissectiongivenbackthearticles
depositedwithitforsafekeeping,allitsobligationsinrespectofthatdepositshallbedeemedfulfilled:
Providedthatnorightorclaimthatanypersonmayhaveormakeagainstthepersontowhomthearticleshave
beengivenbackunderthissectionshallbeprejudicialtotheprovisionofthissubsection.

106.Unacceptabilityofclaimsofotherpersonsonarticlesdepositedforsafekeeping.Noticesofclaimsby
personsotherthanthoseinthenameofwhicharticleshavebeendepositedforsafekeepingwiththebanking
companyshallnotbeacceptableforthatcompany,norshallthatcompanybeboundtotakemeasuresin
accordancewithanysuchnotice:
Providedthatnothingcontainedinthissubsectionshallbeprejudicialtotheauthorityofanycourthaving
jurisdictiononthesaidarticlesandthecompanyshallgivedueweifgttoanydecree,order,certificateorany
othersuchdocumentthecourtmaysubmit.

107.Givingbackofarticlesdepositedinlockers.(1)Whereapersonhasseparatelyrentedalockerinthe
safetyvaultsorinanyotherplaceofabankingcompany,thesaidcompanyshall,inthecaseofhisdeath,permit
thepersonchosenbyhiminadvancetoopen,afterhisdeath,aslongasthelockerisrented,thelockerandto
takethebondsbackfromit.
(2)Wheretwoormorepersonshaverentedalockerofabankingcompanyjointlyandwheretherentagreement
containsaprovisiontotheeffectthatthelockeristousedbythejointsignatureoftwoormorerenters,those
rentersbythesignatureofwhomthelockeristobeusedmay,inthecaseofthedeathofoneormorerenters,
chooseoneormorepersonssothatthecompanymaygiveanotherperson,inplaceofthedeceasedones,the
opportunitytoopen,togetherwiththelivingrenters,thelockerandtotakebackthearticlesdepositedtherein.
(3)Thechoicesundersubsection(1)or(2)aretobemadeinthewaysprescribed.
(4)Beforegivingbackthearticlesdepositedinalockertoanychosenpersonor,asthecasemaybe,toany
jointlychosenpersonandthelivingrenters,thebankingcompanyshall,inthewayprescribedfromtimetotime
bytheBangladeshBank,preparealistcontainingdescriptionsofthearticlesdepositedinthelocker,takethe
signatureofthesaidpersonsandsendthemacopythereof.
(5)Whereabankingcompanyhasinaccordancewiththeprovisionsofthissectiongivenbackarticlesdeposited
initslockers,allitsobligationsinrespectofthedepositedarticlesconcernedshallbedeemedfulfilled:
Providedthatnorightorclaimthatanypersonmayhaveormakeagainstthepersontowhomanyarticlehas
beengivenbackunderthissectionshallbeprejudicialtotheprovisionofthissubsection.
(6)Nosuit,complaintnoranyotherkindoflegalproceedingshallbefiledorcommencedagainstabanking
company,ifanyarticlehasbeendamaged,orappearstohavebeendammagedbyreasonofthebanking
companyhavingconsentedinaccordancewiththeprovisionsofsubsection(1)orsubsection(2)thelockerto
beopenedandthearticlesdepositedthereintobetakenoutofit.

108.Unacceptabilityofclaimsofotherpersonsonarticlesdepositedinlockers.Noticesofclaimson
articlesdepositedinlockersbypersonsotherthanthoseinthenameofwhichthearticleshavebeendepositedin
thelockersofthebankingcompanyshallnotbeacceptableforthatcompany,norshallthatcompanybebound
totakemeasureinaccordancewithanysuchnotice:
Providedthatnothingcontainedinthissectionshallbeprejudicialtotheauthorityofanycourthaving
jurisdictiononthesaidarticlesandthecompanyshallgiveadequteimportancetoanydecree,order,certificate
oranyothersuchdocumentthecourtmaysubmit.

Chaptereight

Miscellaneous

109.Punishments.(1)WhoevercarriesonthebusinessofbankingwithoutholdingalicenceunderthisActor
continuestocarryonthebusinessofbankingaftertheannulmentofhislicenceshallbepunishablewith
imprisonmentforatermwhichmayextendtosevenyearsandshallalsobeliabletoafine.
(2)Ifanypersonmakes,intentionallyandknowingly,anyfalsestatementorinformationwithregardtoany
matterofimportanceinanyaccount,return,balancesheetorinanyotherdocumentorinformationcalledforor
submittedinaccordancewiththerequirementsof,orunder,orforthepurposeof,anyprovisionofthisActor
holdsback,intentionallyandknowingly,anystatementorinformationwithregardtosuchmatter,heshallbe
punishablewithimprisonmentforatermwhichmayextendtothreeyearsandshallalsobeliabletoafine.
(3)Ifadvancesaremadebyabankingcompanyincontraventionoftheprovisionsofsubsection(1)and(2)of
section27,everydirectororofficerofthebankingcompanywhoisresponsableforthepaymentofsuch
advancesshallbedeemedculpableandshallbepunishablewithimprisonmentforatermwhichmayextendto
threeyearsandwithafinenotexceedingtwentythousandTakas.
(4)Ifanypersonfailstoproduceanybook,accountorotherdocumentortofurnishanystatementor
informationundersubsection(2)ofsection44ortoansweranyquestiontoanyofficerresponsibleforthe
carryingoutofresearchesorinvestigationsinmattersrelatingtothebusinessofbankingcompanies,heshallbe
punishablewithafinewhichmayextendtotwothousandTakas,andifhepersistsinsuchrefusal,toafurther
finewhichmayextendtoonehundredTakasforeverydayduringwhichtheoffencecontinues,beginningwith
thefirstdayoftherefusal.
(5)Ifanydepositsarereceivedbyabankingcompanyincontraventionofanorderunderclausea)ofsub
section(5)ofsection44,everydirectororofficerofthebankingcompanyresponsableforthereceivingofsuch
depositsshallbedeemedculpableofthecontraventionandshallbepunishablewithafinewhichmayextendto
twicetheamountofthedepositssoreceived.
(6)Ifanypersonfailstocomplywiththeconditionsofortofulfilthedutiesarisingfrom,anyschemeapproved
undersubsection(7)ofsection77,heshallbepunishablewithafinewhichmayextendtotwothousandTakas,
andifhepersistsinsuchfailure,toafurtherfinewhichmayextendtoonehundredTakasforeverydayduring
whichtheoffencecontinues,beginningfromthefirstdayofthefailure.
(7)IfanypersoncontravenesanyotherprovisionofthisAct,oranyorderordirectiongiven,oranycondition
imposed,oranyrulemadethereunder,heshallbepunishableforthatcontraventionwithafinewhichmay
extendtotwothousandTakas,andifhepersistsinsuchcontravention,toafurtherfinewhichmayextendtoone
hundredTakasforeverydayduringwhichtheoffencecontinues,beginningwiththefirstdayofthe
contravention.
(8)WhereacompanycontravenedanyprovisionofthisAct,oranyorderordirectiongiven,oranycondition
imposed,oranyrulemadethereunder,orfailedtocomplywithanyconditionof,ortofulfilanydutyarising
from,anyschemeapprovedthereunder,everypersonwhowasactingasadirector,manager,secretaryorother
officerofthatcompanywhensuchcontraventionorfailureoccurred,orwasresponsableforthemanagementof
thatcompany'saffairsandthereforboundtogiveaccountstoit,shallalsobedeemedculpableforthat
contraventionorfailure:
Providedthatsuchpersonshallnotbedeemedculpableifhecanprovethatthesaidcontraventionorfailure
tookplacewithouthisknowledge,orthatheexercisedallduediligencetopreventsuchcontraventionorfailure.

110.Chairmen,directorsetc.ofabankingcompanytobepublicservants.Thechairmen,directors,
auditors,liquidators,managersandotherofficersandemployeesofabankingcompanyshallbedeemedpublic
servantsinthesensethistermisusedinsection21ofthePenalCode,1860(ActXLVof1860).

111.Cognizanceofoffences.NocourtshalltakecognizanceofanyoffenceunderthisActwithoutacomplaint
inwritingbyanofficerauthorizedinthisbehalfbytheBangladeshBankinrespectofeitheralltheoffences
generallyoranyspecialoffenceinparticularundersection109.

112.BangladeshBanktotakepunitivemeasures.IftheBangladeshBankintends,inthecaseofoffencesnot
cognizablebyacourt,totakepunitivemeasuresagainstabankingcompanyforcontraventionofanysection
underthisOrdinance,itmay,aftercarryingout,inthewayprescribedbylaw,aninvestigationandgiving
reasonableopportunityforahearingtothebankingcompanyconcerned,imposealegalpenalty.

113.Applicationoffines.AcourtimposinganyfineunderthisActmaydirectthatthewholeoranypart
thereofshallbeappliedinortowardpaymentofthecostsoftheproceedingsconcerned,orinortowardsthe
rewardingofthepersononwhoseinformationthefineisrecovered.

114.Specialprovisionsforprivatebankingcompanies.Theexemptions,whetherexpressorimplied,in
sections17,77,83B,86H,91B,91Dandsubsection(5)ofsection144oftheCompaniesActshallnotoperate
infavourofprivatebankingcompanies.

115.Restrictiononacceptanceofdepositswithdrawablebycheque.Nopersonotherthanabanking
companyortheBangladeshBankoranybankinginstitution,firmorotherpersonnotified,afterconsultation
withtheBangladeshBank,bytheGovernmentinthisbehalfshallacceptdepositswithdrawablebycheque:
ProvidedthatnothingcontainedinthissectionshallapplytoanysavingsbankschemerunbytheGovernment.

116.Restrictiononthechangeofnamebyabankingcompany.Notwithstandinganythingcontainedin
section11oftheCompaniesAct,theGovernmentshallnotsignifyitsapprovaltothechangeofnameofany
bankingcompanyunlesstheBangladeshBankcertifiesinwritingthatithasnoobjectiontosuchchange.

117.Alterationofmemorandumofabankingcompany.Notwithstandinganythingcontainedinthe
CompaniesAct,noapplicationfortheconfirmationofthealterationofthememorandumofabankingcompany
shallbemaintainableunlesstheBangladeshBankcertifiesthatthereisnoobjectiontosuchalteration.

118.Certainclaimsforcompensationbarred.Nopersonshallhaveanyright,whetherincontractor
otherwise,toanycompensationforanylossincurredbyreasonoftheoperationofanyoftheprovisions
containedinsections11,15,23,45,49,75and77ofthisActorbyreasonofthecomplianceofabanking
companywithanyorderordirectiongiventoitunderthisAct.

119.Exchangeofinformation.Bankingcompaniesmay,directlyorindirectly,exchangeinformationontheir
customers,subjecttotheobservationofstrictsecrecy.

120.Powertomakerules.(1)ForthepurposeofthisAct,theGovernmentmay,afterconsultationwiththe
BangladeshBankandbynotificationintheofficialGazette,makerules.
(2)Inparticular,andwithoutprejudicetothegeneralityoftheforegoingpower,suchrulesshallprovideforall
oranyofthefollowingsubjects,namely:

a)statementofallthedetailswhichshallbeincludedinreturnsrequiredunderthisAct
b)thewayinwhichsuchreturnsaretobesubmitted
c)theformofthelistofdebtorswhichtheofficialliquidatorshallsubmittoacourtunderthe
provisionsofchapterVIandVII
d)statementofthesubjectstobeincludedinthatlist
anysubjectwhichshallorcanberegulatedbylawunderthisAct.

(3)Allrulesmadeunderthissectionshallbesubjecttotheconditionofpreviouspublicationandthedatetobe
specifiedundersubsection(3)ofsection23oftheGeneralClausesAct,1897(Xof1897)shallnotbelessthan
sixmonthfromthedateonwhichthedraftoftheproposedruleswaspublished.
(4)TheGovernmentmay,byrulesmadeunderthissection,annul,alteroraddto,alloranyoftheprovisionsof
thesecondschedule.

121.Powertoexemptincertaincases.TheGovernmentmay,afterconsultationwiththeBangladeshBank,
declare,bynotificationintheofficialGazette,thatanyoralloftheprovisionsofthisActshallnotapplytoany
bankingcompanyortoanyparticularbankingcompanyeithergenerallyorforsuchperiodasmaybespecified.

122.Protectionofactiontakeningoodfaith.Nosuitorotherlegalproceedingshalllieagainstthe
GovernmentortheBangladeshBankoragainstanyofitsofficersoremployeesforanythingwhichisingood
faithdoneorintendedtobedoneunderthisAct,orforanydamagecausedorlikelytobecausedbyanything
intendedtobedoneingoodfaith.

123.Repealsandsavings.(1)TheBankingCompanyOrdinance,1991(OrdinanceNo.13,1991)isherewith
repealed.
(2)Notwithstandingtherepealundersubsection(1),anythingdoneunderthesaidordinanceoranyactiontaken
intheexerciseofanypowerconferredthereundershallbedeemedtohavebeendoneortakenunderthisActas
ifthisActhadbeeninforceonthedaysuchthingwasdoneorsuchactionwastaken.

FirstSchedule
(seesection38)
FormA
FormofBalanceSheet

Nottranslated

SecondSchedule
(seesection81(2))
Listofdebtors

1.Theofficialliquidatorshall,fromtimetotime,submitlistsofdebtorstotheHighCourtDepartment,eachlist
beingverifiedbyanaffidavit.
2.Eachsuchlistshallcontainthefollowingparticulars,namely:

a)namesansaddressesofthedebtors
b)amountofdebtduetothebankingcompanybyeachdebtors
c)rateofinterest,ifany,andthedateuptowhichsuchinteresthasbeencalculatedinthecaseof
eachdebtor
d)descriptionsofpapers,writingsanddocuments,ifany,relatingtoeachdebt
e)relieforreliefsclaimedagainsteachdebtor.

3.a)Ineverysuchlist,theofficialliquidatorshalldistinguishbetweenthedebtsforwhichthebankingcompany
holdsanysecurityotherthanapersonalsecurityand(thedebtsforwhichitholdsasecurity?)
AnnotationofthetranslatorThebracketedpassagerunsinthecorrespondingActinthePakistanCodeas
follows:
"thedebtsforwhichnosecurityoronlyapersonalsecurityisgiven".
b)Inthesaidlistshall,inthecaseofsecureddebts,beincludedparticularsofthesecuritiesclaimedbythe
bankingcompany,andwheneverpossibletheirestimatedvalue,andthenamesandaddressesofpersonor
persons,ifany,havinganinterestinthesecuritiesortherightofredemptiontherein
c)Incasethedebtisguaranteedbyanypersonorpersons,thenameandaddressoftheguarantororguarantors
withparticularsastotheextenttowhichthedebtisguaranteedanddocumentsetc.relatingthereto.

4.Ifthedebtorisadjudgedinsolventeitherbeforeorafterhehasbeenincludedinanysuchlist,butbeforesuch
listissettled,thenameandaddressoftheassigneeorthereceiverofhisestate,asthecasemaybe,shouldbe
statedin,oraddedto,thelist,asthecasemaybe.

5.Ifthedebtordieseitherbeforeorafterhehasbeenincludedinanysuchlist,butbeforesuchlistissettled,
thereshallbesubstitutedinhisplacethenamesofhislegalrepresentativesasfarastheofficialliquidatorisable
toascertain.

Potrebbero piacerti anche