The Bank of Ghana (BoG), has restricted shares ownership in Rural and Community Banks (RCBs) in the country to Ghanaians only.
Per the directive contained in the newly issued Corporate Governance Directive guideline, foreigners are no longer allowed to own or hold shares in RCBs.
The issuance of the Corporate Governance Directive guideline based on the Banks and Specialised Deposit-taking Institutions Act, 2016 (Act 930), according to the BoG, 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.
According to the Central Bank, applicable limits to shares ownership or shareholding in RCBs by Ghanaians include;
- Shareholding by any natural person shall not exceed thirty percent (30%) of total shares;
- Family or related party ownership shall not exceed forty percent (40%) of total shares;
- Community participation in ownership shall not be less than twenty percent (20%) of total shares; and
- Corporate bodies are restricted to a maximum of fifty percent (50%) of total shares.
“The Bank of Ghana may review the shareholding limits from time to time or as and when it deems fit,” added the BoG.
Meanwhile, the Central Bank has issued a new directive asserting that newly 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 roles as directors.
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.”
Approved directors of RCBs the Bank also notes, shall serve a maximum term of 3 years and shall not hold office for more than 3 terms.
Peruse below details of the document: