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Islami Bank Bangladesh vice chairman removed from post

Islami Bank Bangladesh Ltd.'s vice chairman has been removed from his post in the latest bout of infighting among the bank's top management, Bangladesh-based The Daily Star reported May 24.

Syed Ahsanul Alam was removed after Chairman Arastoo Khan alleged that Alam violated his oath of office by spreading propaganda against the bank.

Alam will stay on as independent director.

Arastoo added that Yousif Abdullah Al-Rajhi will remain as vice chairman of the bank after it was decided at the bank's May 23 annual general meeting that there would only be one vice chairman post.

Alam had said in a May 11 post on his Facebook page that he was being pressured to resign. When contacted by the publication, Alam said it was impossible for directors to carry out their responsibilities if they have no power to fight management. He also alleged that bank management hired people to attend the annual general meeting and "make noise against the board members."

Some members of the board have criticized the bank's decision to declare a 10% dividend for the fiscal year ended Dec. 31, 2016. The directors said they believe the "meager" dividend was declared in order to stimulate a fall in the bank's share price so that a business group would be able to buy shares cheaply. A Chittagong, Bangladesh-based business group reportedly bought shares of the bank via seven different companies over that past year. The seven companies hold a 14.02% stake in the bank and have seven directors on the board, including Arastoo.