Appointed directors of boards of all Rural and Community Banks (RCBs) in the country are henceforth to receive formal approval from the Bank of Ghana (BoG) before assuming their respective roles.
The new directive by the Bank of Ghana (BoG) is contained in a set of corporate governance directives issued by the Central Bank for RCBs.
According to the Central Bank, a director elected at an Annual General Meeting (AGM) or appointed at a Board Meeting of an RCB will only assume his or her role after the BoG’s determination of the “fitness and propriety of the proposed Director.”
“A proposed Director elected at the Annual General Meeting (AGM) or appointed at a Board Meeting of an RCB shall not take up the office of Director on the Board unless that proposed Director has been given a prior written approval by the Bank of Ghana after it has made a determination of the fitness and propriety of the proposed Director,” averred the Central Bank.
“An RCB shall notify the Bank of Ghana of the changes in its Directors and Key Management Personnel as soon as the changes occur and obtain prior written approval from the Bank of Ghana before assumption of duty,” the Bank added.
The newly issued corporate governance directives according to the Bank of Ghana, is to ensure that RCBs adopt sound corporate governance principles and best practices to enable them undertake their licensed business in a sustainable manner.
It is also to promote and maintain public trust and confidence in RCBs by prescribing sound corporate governance standards which are critical to the proper functioning of RCBs.
Read below details of the BoG’s corporate governance directive: