Bangladesh Bank has relaxed a provision of the Bank Company Act, 1991, allowing BRAC Bank to appoint up to three representative directors from a single shareholder institution to its board of directors.

The decision was announced in a circular issued by the central bank on Monday, October 12, 2026.

Under the special approval, an institution holding 10 per cent or more but less than 50 per cent of BRAC Bank’s shares will be allowed to nominate multiple representative directors, subject to a maximum of three.

The central bank relaxed the restriction under Section 23(1)(ccc) of the Bank Company Act, 1991, exercising its authority under Section 121 of the law.

Under the existing provision, a single institution or company cannot have more than one representative director on a bank’s board. The special exemption will allow BRAC Bank to make an exception to this rule.

A Bangladesh Bank official said BRAC owns around 46 per cent of BRAC Bank’s shares. However, the existing legal restriction prevented the institution from appointing multiple representative directors.

The latest decision will enable BRAC to nominate up to three representative directors to the bank’s board, subject to the applicable conditions.