The existing officers and employees of the transferee bank-company or finance company shall not be retrenched by the transferee bank-company before completion of 3 years. However, after 3 years, the reorganized or transferee bank-company can take appropriate decisions after evaluating the performance of the said officers-employees.
These things have been said in the bank and financial institution merger policy issued by Bangladesh Bank on Thursday (March 4).
According to the policy, the Managing Director, Additional Managing Director and Deputy Managing Director of the defunct bank/finance company cannot be held in any position in the merged bank-company.
The board of directors of the merged bank-company may appoint any officer of the post of managing director, additional managing director and deputy managing director of the defunct company on a new contractual basis if it deems fit. However, if the transferring bank/finance company is a government-owned institution, then the government can retain/transfer the managing director, additional managing director and deputy managing director of the concerned bank/finance company to its other bank/financial institution.
Bangladesh Bank has informed that after the merger, no incumbent director of the transferee bank/finance company can be appointed as a director on the board of directors of the transferee bank-company. However, after the lapse of 5 years, the shareholders of the transferor bank in proportion to their shareholding, subject to the requisite qualifications and suitability may be included as directors on the board.
Further, in the case of those who were in charge as directors at the time of amalgamation, after 5 years as one of the qualifications for becoming a director, the condition of regular retention of those directors in the loan/investment bank/financial institution without any rescheduling/reorganization must be fulfilled within the period of 5 years.
According to the policy, the transferee bank/finance company shall generally give priority to the payment of deposits of the transferee bank/finance company to the payment of individual depositors or the activation of their accounts and banking transactions.
In the case of payment of institutional depositors, if a payment action plan is sent for the approval of Bangladesh Bank for the purpose of full payment at a specified time, Bangladesh Bank shall give approval to the proposed plan, with or without necessary modifications, for the trial implementation of the said action plan.