Kazi Zahidul Hasan:
Grameen Bank (GB) that won the 2006 Nobel Peace Prize, along with its founder Dr Muhammad Yunus, is facing huge difficulties to run its day-to-day affairs due to absence of an elected board of directors for a period of two and a half years.
In wake of the situation, the GB Chairman, Prof Mozammel Hoque, sought Finance Minister AMA Muhith’s intervention to overcome the situation.
He came up with the request while sending a letter in this regard to the minister on July 19 this year.
The GB chairman in the letter also requested the minister to take immediate steps to amend and add of several rules and sub-rules of GB (Election of Directors) Rules 2014, saying such a move can help conduct election of the bank’s board of the directors within the shortest possible time as well as ensure smooth functioning of the bank.
The 12-member GB board is comprised of nine borrower-directors, who are elected every three years, and three government-nominated directors, one of whom serves as chairman.
The nine elected directors of the micro lender have become vacant since their three-year tenure expired on February 7, 2015.
Dr Muhammad Yunus, who founded the bank, was relieved of his duties at Grameen Bank on May 11, 2011 as he lost a legal battle with the government.
The Bank and Financial Institutions Division (BFID) of the Finance Ministry set the GB’s electoral rules issuing a circular on April 1, 2014. The rules were put in place to guarantee the purpose of the bank.
The sub-rule 5 (1) of the GB’s (Election of Directors) rules notifies that the election of the bank’s board has to be held within the six months after the formulation of the rules and the posts of GB directors will turn vacant immediately after the announcement of election schedule.
Challenging the ministry’s decision, Tahsina Khatun, one of the directors of GB, filed a writ petition (April 2015) in the court stating that the posts of the nine elected directors would be vacant after the election commission announces the election schedule to select their replacements.
“As the new directors are yet to be elected, we still hold the posts of the nine directors,” said Tahsina Khatun.
On May 09, 2015, the court issued a rule upon the matter. And the case is under trial.
As problems mount over the issue, the authorities on October 27, 2014, issued another circular bringing amendments to sub-rules 5(1) and 6 (1) aiming to hold immediate election of the GB board. But they are yet to form an election commission further delaying the election.
“Election of GB’s board is yet to take place even amendment has been done to its electoral rules. At the same time, previous directors claiming that they are still holding their posts as per the 5 (1) sub-rules of GB (Election of Directors) Rules 2014. It created complexity,” narrated GB Chairman Prof Mozammel Hoque.
“Absence of a full board in a financial institution for a long period leads to stuck up many important works and hinders the smooth functioning of the institution. As the GB (Election of Directors) Rules 2014 has not been in force for a long-time, amendment and addition of several rules and sub-rules can help mitigate the current crisis,” the letter contained.
The rules and sub rules are: 2 (24), 6 (1), 6 (1) A, 6 (1) B, 6 (1) C, 7 (1), 7 (2), 9 (1), 10 (2), 29 (2), 30 and 31.
“If amendment and addition of these rules are being approved, it can help not only the authorities to arrange the GB’s board election within the shortest possible time but also help it to get a full board. It can also help ease the legal tussles,” he added.
