Ex-chairman of One Bank replies to BB’s letter of removal

Sayeed Hossain Chowdhury, who was relieved from the chairmanship of One Bank on July 5, has provided legal explanations in support of his claim to be a lawful director of the bank.

Sayeed made the claim in a letter he sent to the Bangladesh Bank governor and Banking Regulation and Policy Department (BRPD) general manager on Sunday.

Speaking to The Business Standard, Sayeed Chowdhury said, "In the letter, I also urged the Bangladesh Bank to review the issue and withdraw the letter that relieved me from the bank's board."

On July 5, the Bangladesh Bank issued a letter, relieving the then One Bank chairman from the bank's directorship that subsequently made him ineligible to hold the chairman post of the bank, setting October 15, 2019 as the effective date.

The Bangladesh Bank in its letter mentioned that none can be posted or appointed as director of a bank without its approval.

Sayeed, in his letter to the Bangladesh Bank, however mentioned that this approval was not required. However, when this would be needed in future approval of the central bank would indeed be taken. 

In reply to the default loan issue of companies with which he was associated, the Sayeed mentioned that the Bangladesh Bank's allegation is incorrect. "The Standard Bank has confirmed that the HRC Shipping is not a defaulter client," Sayeed said. 

At the time of being elected as a director on March 31, 2016, the credit information bureau report of Sayeed was clean.

He also mentioned that the Bank Companies Act, 1991 clearly states that once a director is validly appointed, he or she cannot be removed from the position at any point of time during his tenure, without genuine reason.

Besides, the letter also mentioned that the onus of taking approval of a director is not with the director himself but it is the responsibility of the bank company.