IDRA Appoints Observer to the Board of Directors of Islami Insurance

Staff Correspondent: The Insurance Development and Regulatory Authority (IDRA) has appointed an observer to the Board of Directors of Islami Insurance Bangladesh Limited. Executive Director (Joint Secretary) of the authority, Monira Begum, has been given this responsibility.

This information was communicated in a letter signed by IDRA’s Deputy Director (Non-Life) Md. Solaiman on Wednesday (28 October).

The letter stated that Monira Begum has been appointed as observer under Section 51(c) of the Insurance Act 2010. She will perform this duty until further instructions are given.

According to IDRA’s directives, Monira Begum will attend the meetings of the company’s Board of Directors and inform the authority of the decisions taken in the meetings. However, she has been instructed to refrain from voting in the meetings and from giving any decision or opinion.

In addition, IDRA has directed the company’s Chief Executive Officer or Company Secretary to regularly invite Monira Begum to the Board of Directors’ meetings along with the agenda papers.

It is to be noted that there have long been allegations of various irregularities, arbitrariness and violations of good governance in the Board of Directors of Islami Insurance Bangladesh. Chairman of the company Mohammad Saeed Khokon and five directors including members of his family were absent without approval from three consecutive Board meetings. Under the Companies Act, a director’s position becomes vacant if they remain absent from three meetings without approval.

In addition, serious allegations were raised against the Chairman of excluding promoter directors without reason, including members of his own family on the Board, and illegally running the company while residing abroad.

Seeking remedy for these financial irregularities and violations of corporate governance, five promoter directors of the company lodged a complaint with IDRA on 30 June and filed an application in the High Court. After the hearing, on 9 July the High Court directed IDRA to dispose of these complaints and submit a report by 26 October 2026.

Two days after the expiry of the deadline set by the higher court (26 October), on 28 October IDRA took the step of appointing this observer to the Board of the insurance company amid the long-standing allegations of irregularities.