Re : shareholders of Financial Institutions/limit of shareholding
of institutional shareholders
It has been decided in this regard that –
(a) Members of the same family cannot solely or jointly or both hold more than 20 percent shares in any Financial Institution.
(b) In case of institutional shareholders of Financial Institutions established by joint venture (local and foreign investment), the maximum limit of shareholding solely or jointly (concerned institution and institutions in which it has interest) or both shall be 25 percent of the total shares.
(c) All financial institutions shall bring their shareholding structure in conformity with the above direction within 31 December 2002. However, in case of shares held by the Government or in accordance with any agreement with the Government, this direction shall not be applicable.
(d) The above-mentioned directions have to be informed to all members of the Board of Directors and shareholders in a proper manner in the Annual General Meeting/Extraordinary General Meeting/Board Meeting or in any other manner.
This direction has been issued for public interest. Kindly acknowledge receipt.
For: “The Lawyers & Jurists”