THE BANGLADESH BANKS (NATIONALISATION) ORDER, 1972 (PRESIDENT’S ORDER), PART 3

26[27A. (1) Notwithstanding anything contained in this Order, the Government may, if in the national interest it deems it expedient so to do, transfer, by agreement, the entire undertaking of any new bank to any company registered under the Co

(2) Where the entire undertaking of any new bank has been transferred under clause (1), such new bank shall, on such date as the Government may by order notified in the official Gazette specify, stand dissolved.

Explanation.- The undertaking of a new Bank includes its business, projects, schemes, assets, rights, powers, authorities and privileges, its properties, movable and immovable, reserve funds, investments and deposits and its borrowings, liabilities and obligations of whatever nature.

(3) The Government may, for the purpose of removing any difficulty in relation to the transfer of the undertaking of a new bank under clause (1) or the dissolution of such bank under clause (2), make such order as it considers expedient and any such order shall be deemed to be, and given effect to as, part of the provisions of this Order.]

  1. The Government may, by notification in the official Gazette, make rules for the purpose of giving effect to the provisions of this Order.
  2. (1) The Board of any new bank may, with the previous approval of the Government, make regulations, not inconsistent with the provisions of this Order and the rules, to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provision of this Order.

(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for-

(a) the calling of the meetings of the Board or of any committee, fees for attending the meetings thereof and the conduct of business thereat;

(b) the delegation of powers and functions of the Board to the 27[Chairman, Managing Director], Director, officer or other employee of the bank;

(c) the conditions subject to which the bank may grant loans;

(d) the manner of determining the sufficiency of the security for the purpose of business;

(e) the manner and conditions subject to which the bank may borrow in foreign currency;

(f) the form of returns and statements required to be prepared under this Order;

(g) the duties and conduct of advisers, officers, other employees and agents of the bank;

(h) the recruitment, remuneration, promotion and other terms and conditions of service of the officer and other employees of the bank;

(i) the establishment and maintenance of pension, provident or other fund for the benefit of officers and other employees of the bank including the dependents of such officers and other employees;

(j) the provision of a seal of the bank and the manner and effect of its use;

(k) the disclosure of interest, direct or indirect, of any Director or any member of a committee in any business concern;

(l) taking over the management and control of any industrial or business concern committing a breach of its agreement with the bank;

(m) publication of audited balance-sheet and profit and loss account;

(n) generally for the efficient conduct of the affairs of the bank;

(3) All regulations made under this Article shall be published in the official Gazette and shall come into force on such publication.

  1. If any difficulty arises in giving effect to the provisions of this Order, the Government may make such Order, not inconsistent with the provisions of this Order, as may appear to it to be necessary for the purpose of removing the difficulty.
  2. All laws relating to banker and banking companies shall, subject to such adaptations and modifications as may be made from time to time, shall be applicable to the new banks.
  3. (1) The existing banks shall stand dissolved in Bangladesh on such date as the Government may, by notification in the official Gazette, appoint 28[:

Provided that any dissolution of an existing bank shall preclude such bank thereafter from being treated as if it were incorporated pursuant to or by virtue of Bangladesh law, but shall not otherwise destroy or be deemed to have destroyed the corporate existence of such existing bank where the existing bank is a foreign corporation.]

(2) Notwithstanding anything contained in clause (1), the Board of Directors, of existing banks if any, shall, on the commencement of this Order, stand dissolved and the Chairman and other directors of such Boards shall cease to function.

1 The words “whichever is earlier” were omitted by Article 2 of the Bangladesh Banks (Nationalisation)(Amendment) Order, 1972 (President’s Order No. 38 of 1972)

2 Clause 1 was substituted by section 2 of the Bangladesh Bank (Nationalisation) (Amendment) Act, 2003 (Act No. X of 2003)

3 The colon (:) was substituted for the full-stop (.) and the proviso was inserted by section 2 of the Bangladesh Banks (Nationalisation) (Amendment) Act, 1980 (Act No. VI of 1980)

4 Clause 2 was substituted by section 2 of the Bangladesh Bank (Nationalisation) (Amendment) Act, 2003 (Act No. X of 2003)

5 Articles 7A and 7B were inserted by Article 2 of the Bangladesh Banks (Nationalisation) (Second Amendment) Order, 1972 (President’s Order No. 132 of 1972)

6 The commas and words “, subject to such general or special orders as the Government may give it from time to time,” were inserted by Article 2 of the Bangladesh Banks (Nationalisation) (Second Amendment) Order, 1972 (President’s Order No. 132 of 1972)

7 Clause (2) was substituted by section 2 of the Bangladesh Banks (Nationalisation) (Amendment) Act, 1974 ( Act No. XX of 1974)

8 The commas and words “, who shall be the Chairman of the Board,” were omitted by section 2 and the Schedule of the Banks and Financial Institutions Laws Amendment Act, 1980 (Act No. IX of 1980)

9 Clause 1 was substituted by section 3 of the Bangladesh Bank (Nationalisation) (Amendment) Act, 2003 (Act No. X of 2003)

10 Clause 3 was added by section 3 of the Bangladesh Bank (Nationalisation) (Amendment) Act, 2003 (Act No. X of 2003)

11 Article 11A was inserted by section 2 of the Bangladesh Banks (Nationalisation) (Amendment) Ordinance, 1983 (Ordinance No. LIX of 1984)

12 Clause 1 was substituted by section 4 of the Bangladesh Bank (Nationalisation) (Amendment) Act, 2003 (Act No. X of 2003)

13 Clause 3 was added by section 4 of the Bangladesh Bank (Nationalisation) (Amendment) Act, 2003 (Act No. X of 2003)

14 Article 12 was substituted by section 2 of the Bangladesh Banks (Nationalisation) (Amendment) Ordinance, 1977 (Ordinance No. XII of 1977)

15 Clause (aa) was added by section 5 of the Bangladesh Bank (Nationalisation) (Amendment) Act, 2003 (Act No. X of 2003)

16 Clause (f) was added by section 5 of the Bangladesh Bank (Nationalisation) (Amendment) Act, 2003 (Act No. X of 2003)

17 Article 15A was inserted by section 2 and the Schedule of the Banks and Financial Institutions Laws Amendment Act, 1980 (Act No. IX of 1980)

18 Article 21A was inserted by section 2 of the Bangladesh Banks (Nationalisation) (Amendment) Ordinance, 1978 (Ordinance No. XXXIX of 1978)

19 The words “other provisions of this Article and” were inserted by section 2 of the Bangladesh Banks (Nationalisation) (Amendment) Ordinance, 1977 (Ordinance No. XXVIII of 1977)

20 The commas and words “, unless altered by the Government in the interest of equity and uniformity,” were inserted by Article 2 of the Bangladesh Banks (Nationalisation) (Second Amendment) Order, 1972 (President’s Order No. 132 of 1972)

21 Clause (6) was inserted by section 2 of the Bangladesh Banks (Nationalisation) (Amendment) Ordinance, 1977 (Ordinance No. XXVIII of 1977)

22 The words, comma, figures, brackets and letters “Bangladesh Chartered Accountants Order, 1973 (President’s Order No. 2 of 1973)” were substituted for the words, comma, figures and brackets “Chartered Accountants Ordinance, 1961 (Ordinance X of 1961)” by section 2 and the Schedule of the Banks and Financial Institutions Laws Amendment Act, 1980 (Act No. IX of 1980)

23 The word “Board” was substituted for the word “Government” by section 6 of the Bangladesh Bank (Nationalisation) (Amendment) Act, 2003 (Act No. X of 2003)

24 Clause 5 was substituted by section 6 of the Bangladesh Bank (Nationalisation) (Amendment) Act, 2003 (Act No. X of 2003)

25 Clause (6) was inserted by Article 2 of the Bangladesh Banks (Nationalisation) (Second Amendment) Order, 1972 (President’s Order No. 132 of 1972)

26 Article 27A was inserted by section 2 of the Bangladesh Banks (Nationalisation) (Amendment) Ordinance, 1983 (Ordinance No. XLVII of 1983)

27 The words and comma “Chairman, Managing Director” were substituted for the words “Managing Director” by section 2 and the Schedule of the Banks and Financial Institutions Laws Amendment Act, 1980 (Act No. IX of 1980)

28 The colon (:) was substituted for the full stop (.) and the proviso was inserted by Article 2 of the Bangladesh Banks (Nationalisation) (Second Amendment) Order, 1972 (President’s Order No. 132 of 1972)

 

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