IDRA Imposes Ban on Virtual Board Meetings for Insurance Companies
The Insurance Development and Regulatory Authority (IDRA) has issued a directive banning virtual meetings for the board of directors of life insurance and general insurance companies. The decision was made at the 179th board meeting of IDRA, after which a letter was sent to the insurance companies outlining the new regulation.
The directive states that meetings of the boards of directors, as well as any committees of the boards, cannot be held virtually. All members are required to attend meetings in person.
Following the downfall of the Awami League-led government under Sheikh Hasina on August 5 of the previous year, several directors of insurance companies went into hiding. These directors have been attending board meetings virtually to maintain their positions. According to the new IDRA directive, these directors will lose their positions if they miss three consecutive board meetings.
A CEO of an insurance company commented, "Over the past 15 years, a few directors have used political influence to secure positions in several insurance companies. After the government fell on August 5, they went into hiding. However, some have continued to attend board meetings virtually."
He further stated, "With IDRA's new directive, virtual participation in board meetings will no longer be allowed. As a result, directors who are hiding may lose their positions, as they will forfeit their directorship after missing three consecutive meetings."
