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Top UCBL bosses served show-cause notices for violating court order
FE Report
10/13/2005
The Bangladesh Bank (BB) issued show-cause notices on the managing director and the secretary of the
United Commercial Bank Limited (UCBL) Wednesday for violating court order relating to hold an annual
general meeting (AGM), official sources said.
The central bank also asked the bank Managing Director (MD) Hamidul Huq and Secretary Mirza Mahmud
Rafiqur Rahman to explain within a week their positions why legal action will not be taken against them,
official sources said.
"We will take next course of action in line with the existing Bank Company Act after receiving reply from
the top bosses of the bank within the stipulated time," a BB senior official told the FE Wednesday.
The central bank issued the notices to the bank MD and secretary under the existing Bank Company Act for
violating the secession 112 of the constitution showing disrespect to the High Court order for holding the
AGM.
"Where a person holding the office of chairman or director or manager or chief executive officer, by
whatever name called, of a banking company is, or has been found by any court, tribunal or other authority
to have contravention the provision of any law and the Bangladesh Bank is satisfied that the convention is
of such a nature that the association of such person with the banking company is or will be detrimental to
the interest of banking company is or will be detrimental to the interests of banking company or its
depositors or otherwise undesirable, the Bangladesh Bank make an order that that person shall cease to hold
the office with effect from such date as may be specified therein and thereupon, that office shall, with effect
from the said date, become vacant," the Bank Company Act said.
It also said no order should be made in respect of any person unless he has been given an opportunity of
making a representation to the Bangladesh Bank against the proposed order.
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