Debar wilful defaulters from running banks

This refers to the report, “BASIC goes aggressive to recover loans” (Sept.30). Hats off to The Daily Star for publishing the names of defaulters. Bangladesh needs to amend its laws to deal with wilful defaulters. When politicians are made to declare in their affidavits filed with the Election Commission, whether any criminal cases are pending against them, then those standing for elections to the post of the chairman and managing director, seeking re-nomination as director of the company or getting elected as a director on the board of a company, should also be made to disclose whether they have been declared as wilful defaulters by a bank or a financial institution. Those who want to run companies should have impeccable credentials. They should file affidavits with the election officer of the annual general meeting of a company and it should also be on the website of the company and also form part of the communication sent to the shareholders. The practice of filing affidavits as is done in case of elections to the parliament should also be extended to elections of the chairman, the managing director and director of companies for sound management of companies. Also, the banks in Bangladesh should share details of loans taken by companies with each other and loans should not be given to wilful defaulters.

Deendayal M. Lulla
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