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Govt seeks to slash terms of local banks' board of directors

Shaina Abdulla
28 June 2018, MVT 15:01
The entrance to People's Majlis, the parliament chamber of the Maldives.
Shaina Abdulla
28 June 2018, MVT 15:01

Maldives government has proposed an amendment to the Banking Act to reduce the term of the board of directors in local banks.

The amendment bill to reduce the term of local banks’ board directors, to three years, was proposed by ruling Progressive Party of Maldives (PPM) member and Gemanafushi MP Jameel Usman.

According to the current regulations under Maldives Banking Act, boards of directors are elected during the banks’ annual general meetings for a term of four years.

The proposed amendment, in accordance with the current regulations, state that elected members can be re-elected for a second term.

The current regulations also dictate that a member elected to the board must be between the ages of 30 and 60. However, central bank Maldives Monetary Authority (MMA) is granted the power to extend the age limit if a board director passes the fixed age during an ongoing term.

The pro-government lawmaker had further proposed to amend the age limit of elected board members to ages between 25-60.

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