Former executive director of Social Islami Bank Ltd (SIBL) Nazmus Sadat has been appointed as the bank’s vice chairman without the written approval of Bangladesh Bank, sparking controversy over the legality of the appointment.
According to sources, during a recent board meeting, Nazmus Sadat was summoned and directly included in the committee, where he was announced as the vice chairman.
It is reported that he was present from the beginning to the end of the meeting and even delivered a speech, despite not having obtained the necessary approval from the central bank. This action does not comply with any relevant company law, the Bank Companies Act, or the regulations governing listed companies.
Under standard procedures, if an individual is to be included on the board as a director, approval must first be obtained from the board, followed by a submission to Bangladesh Bank.
Only upon receiving a No Objection Certificate (NOC) from Bangladesh Bank can the individual attend the subsequent meeting. In this instance, however, the inclusion of an individual on the board without written approval from Bangladesh Bank is in direct violation of the law.
During the same board meeting, a memo was issued to reappoint Nazmus Sadat, a former executive who had been permanently released, as the deputy managing director (DMD).
Despite not yet being officially appointed, he was present throughout the entire meeting, which raises concerns about privacy breaches in the formation of a new board.
Sadat remained constantly alongside the former chairman, who is now a current director, a situation that neither complies with the Bank Companies Act nor with any internal bank circulars.
These actions have led to an atmosphere of unease within the bank, with many fearing there were further plans that ultimately did not come to fruition. Notably, several significant decisions appear to have been left unresolved during the meeting, raising additional concerns.
Moreover, the presence of a former executive director of Bangladesh Bank, along with other notable figures who did not view the situation favourably, has added to the complexity. This situation begs the question of how the minutes of such a board meeting will be recorded.
