Two chairmen - Mahendra Amarasuriya (Commercial Bank) and Arthur Senanayake (Sampath Bank) - are among 15 directors of licensed commercial bank (LCB)s who will step down by end December in line with Central Bank (CB) rules, according to CB sources.
Among other directors stepping down are - Sunil G Wijesinha, Mohan A Abeynaike, Lakshman J.K. Hettiaratchi, Denzil J Gunaratne (all from Sampath) and Dr. H.S. Wanasinghe (Commercial Bank).
“In almost all banks some directors will need to step down in order to comply with section 3 (2) of the Banking Act Direction No. 11 of 2007 – Corporate Governance for LCBs,” one source told the Business Times.
This section deals with the director board’s composition in LCBs where it is said that the total period of service of a director other than one who holds the position of CEO shall not exceed nine years and that such period in office shall be inclusive of the total period of service served by such a director up to January 1, 2011.
The source added that the CB issued Directions on Corporate Governance for licensed banks, with a view to making board of directors responsible and accountable for the business of banks and to promote a healthy and robust risk management framework for banks.
|
E-mail
