In
order to promote good corporate governance and to encourage
President/Chief Executive and Board of Directors to play an
effective role for the capacity building of their institution
certain guidelines under “Fit & Proper Test” have been
formulated for the appointment of President/Chief Executive
and filling of the vacancy of Director on the Board. While
applying to SBP for obtaining prior clearance in terms of
BPRD Circular No. 12 dated 2nd June, 2000, the
financial institution should ensure that guidelines given
under “Fit & Proper Test” (Annexure-I) have been complied
with. The “Fit and Proper Test” guidelines are practiced &
implemented by regulators globally.
2. In addition to submission
of requisite information about appointment of proposed President/Chief
Executive and Directors of Board, information in a simple
proforma (enclosed at Annexure-II) shall also be provided
by the bank/NBFI for obtaining necessary clearance from other
institutions, if any. This proforma will replace the one notified
vide BSD Circular Letter No. 32/2000 dated 23rd
November, 2000. The Circular Letter dated 23rd
November, 2000 shall stand withdrawn with immediate effect.
3. The institution not
meeting the Fit & Proper Test in respect of their President/Chief
Executive and Board of Directors may regularize the position
within 120 days from the date of issuance of this circular.
Encl:
As above
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