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 separately for the appointment of President/Chief
Executive and filling of the vacancy of Director on the Board
vide BPD Circular No. 16 dated 29th June, 2002
and Circular Letter No. 27 dated 14th October,
2002. Subsequent to that, few changes/amendments were made
in “Fit & Proper Test” to make it more comprehensive.
In order to consolidate such instructions, the aforesaid Circular
and Circular Letter has accordingly been substituted. The
revised criteria of “Fit & Proper Test” is enclosed as
Annexure-I.
2. While applying to SBP
for obtaining prior clearance in terms of BPRD Circular No.
12 dated 2nd June, 2000, the financial institution
shall ensure that guidelines now given under the revised “Fit
& Proper Test” have been complied with. 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/DFI.
3. Accordingly, BPD Circular
No. 16 dated 29th June, 2002 and BPD Circular Letter
No. 27 dated 14th October, 2002 shall now stand
cancelled.
Encls:
As above.
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