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Farmers Bank chairman quits; managing director ordered to be removed

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Farmers Bank chairman quits; managing director ordered to be removed

The chairman of Farmers Bank Ltd.'s board stepped down to comply with a central bank order, while the company's incumbent managing director was ordered to be removed from his post.

Muhiuddin Khan Alamgir resigned as chairman of the company's board, The Daily Star reported Nov. 27, citing a statement from Bangladesh Bank. Another board member, Mahabubul Haque Chisty, also resigned as chairman of the audit committee.

Bangladesh Bank asked the two to step down from their posts due to their alleged involvement in fraudulent financial schemes. The central bank would have removed them from the board in line with the country's Banking Company Act 1991 had they not resigned, according to the report.

Following their resignation, Mohammad Masud and Maruf Alam were named chairman and vice chairman, respectively.

The board restructuring, including the revamp of the company's three vital committees, would help restore the confidence of the depositors who have withdrawn their funds as the conditions of the company deteriorated, the central bank said in a statement.

Separately, Bangladesh Bank ordered Farmers Bank to remove incumbent Managing Director A. K. M. Shameem after the company was found to have irregularities, including disbursement of loans to nonexistent companies, the Dhaka Tribune reported the same day, citing a letter from the central bank.

The company's management was asked to explain why Shameem should not be removed from his post within seven days, the report said.