The Privatization and Corporatization Board (PCB) has sent a letter to dismiss Bank of Maldives (BML) Deputy CEO Aishath Nooruddin.
Reliable sources confirmed to Adhadhu that the letter was sent on Thursday, stating that Nooruddin had been removed from the bank's board of directors.
This comes at a time when there are reports that the national bank was planning changes to dollar transactions due to the financial crisis. Some reports also suggest that the government will face difficulties in paying the salaries this month.
Sources familiar with the matter told Adhadhu that the PCB sent a letter to Nooruddin after she refused to follow government orders.
However, the national bank's statutes do not allow the dismissal of board members through a letter from the PCB.
The statutes clearly define the composition of the board, their term and the rules for retiring, disqualification and removal of directors.
Clause 58 of the statutes states the rules for retiring, disqualification and removal of directors. It mentions 10 circumstances in which the post of director can become vacant. This does not include dismissal by the PCB or the government.
Clause 58 (b) states the process to be followed if the government wants to dismiss directors. A resolution has to be passed by 51 percent of the shareholders present at a meeting of shareholders. As the main shareholder of the bank, the government can easily do this without the vote of the public shareholders.
According to Clause 56 of the statutes, a director is required to continue performing their duties until the next Annual General Meeting unless removed in accordance with the statutes.
Earlier in January this year, all non-executive members representing the government on the board of directors received letters of dismissal.
However, the decision was reversed as the statutes do not allow for dismissal through a letter from the PCB.
Nooruddin is one of the longest-serving employees at BML. She joined the bank in 1982 and has served as the acting CEO and Managing Director over the last 40 years.
She served as BML's Managing Director four times and was the bank's top executive before the current CEO Karl Stumke took over.
The directors of BML are proposed and appointed by the shareholders. As the largest shareholder, the government gets to appoint seven directors. Three of the remaining four directors are elected by the public shareholders and one is an independent director proposed by the government.
