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Move to amend articles of association of 34 GB ‘subsidiaries’

  • Published at 02:56 am July 2nd, 2013
Move to amend articles of association of 34 GB ‘subsidiaries’

The government is going to amend the articles of association of 34 subsidiaries owned by Grameen Bank as Nobel Laureate Prof Yunus is still the chair of all those entities.

The amendment gets underway as per the recommendations of Grameen Bank Commission.

Officials of Bank and Financial Institutions Division said the government has taken the initiative with a view to preventing people and members of those firms from being cheated.

As per the initiative, the banking division sent a letter to Bangladesh Bank last week seeking amendment to the articles of association of Grameen Shakti and Grameen Kalyan.

In reply, Bangladesh Bank said it would not be able to amend the articles, nor recommend anything for the issue since the two subsidiaries – Grameen Shakti and Grameen Kalyan – of Grameen Bank took licence from the commerce ministry under the 28th provision of company law.

Prof Yunus is the chairperson of both the firms.

Earlier, the commerce ministry rejected two separate proposals on restructuring of the boards of directors for the two Grameen Bank subsidiaries since no government representatives were proposed for inclusion in the boards.

Grameen Shakti and Grameen Kalyan submitted the proposals to restructure their boards of directors as per the recommendation of the government-formed Grameen Bank commission.

The government formed a four-member commission in May last year to review the activities of Grameen Bank and its associate organisations and to make recommendations for the future role of the bank and its subsidiaries.

As per the proposal of Grameen Shakti, its board of directors will be comprised of 15 members instead of 25 since there is a shortage of experienced persons in the renewable energy sector.

The memorandum of article of Grameen Shakti will be amended in order to facilitate removal of its directors and auditors from their posts, according to the proposal.

The tenure of the chairman and board of directors of the company will be three years and the quorum made of five members instead of the existing six, according to the proposal.

The chairman will be selected by the board of directors of Grameen Shakti.

Last August, the government amended the 29-year-old law governing Grameen Bank, giving more power to the government-appointed chairman to choose the bank’s chief executive.

Grameen Shakti and Grameen Kalyan are non-profit firms established in 1996.

Grameen Shakti came into being to promote, develop and popularise renewable energy technologies in remote areas.