• Monday, Jan 30, 2023
  • Last Update : 10:24 am

Cabinet approves draft Finance Company Bill

  • Published at 02:59 pm May 31st, 2021
web-finance-take notes

Existing financial institutions would become companies but they would require neither fresh registration nor change in their existing memoranda of association

The Cabinet on Monday approved in principle the draft of Finance Company Bill, 2021, keeping a provision of imposing a fine of Tk1 crore as the maximum administrative punishment for violation of the law.

The approval came from the Cabinet’s virtual meeting held with Prime Minister Sheikh Hasina in the chair.

“The new proposed law has brought changes to the Finance Institutions Act, 1993, as it is not that much effective,” said Cabinet Secretary Khandker Anwarul Islam at a press briefing at the Secretariat.

As per the proposed law, the existing financial institutions would become companies but they would require neither fresh registration nor change in their existing memoranda of association.

He said a provision of huge fines were as administrative pecuniary punishments in some clauses of the draft law. The maximum punishment is Tk1 crore fine, he said adding that the criminal offence will be tried separately under penal codes.

According to the bill, no one can run a finance company without taking a licence from the Bangladesh Bank.

The bill precisely defined loan defaulters as well as fixed the ceilings for the amount of deposited money and interest rates.

During approval of the draft law, the Cabinet made an observation for the authorities to review whether the bankruptcy issue of a company can be solved outside the court and if the issue can be incorporated in the proposed law, said the Cabinet Secretary.

He said now the court declares a company bankrupt. It takes time to remove the bankruptcy-related complexities, completing all the legal procedures following the High Court’s judgment over a bankruptcy issue.

Besides, the Cabinet cleared the draft of Leader and Deputy Leader of the Opposition (Remuneration and Privileges) Act, 2021 in order to replace the Leader and Deputy Leader of the Opposition (Remuneration and Privileges) Ordinance, 1979, which was promulgated during the military regime.

“No major change has been brought in the proposed law,” he said.

It also approved in principle the draft of Bangladesh Homoeopathic Treatment Education Act, 2021, which will replace the Bangladesh Homoeopathic Practitioners Ordinance, 1983.

The meeting cleared the draft Bengali and English versions of the National Financial Inclusion Strategy.   

The Cabinet approved the draft of an agreement to be signed between Bangladesh and Botswana on visa exemption for those having diplomatic and official passports.

Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail