Accra, Ghana (ADV) – Transitional directives issued by the Bank of Ghana will force long-serving chief executives, board chairmen or non-executive directors to go on compulsory leave early next year, sources said Monday.
Those executives who fall within that category have been given up to the end of this week to give valid reasons why they should not compulsorily leave their positions early next year.
The Accra-based Joy 99.7 FM further quoted a Bank of Ghana statement saying that no managing director of a bank can serve for more than three terms of four years each, totaling 12 years.
Similarly, no board chairman can henceforth serve for more than two terms of three years each totaling six years in all, the source explained.
In the same vein, no non-executive director can serve for more than three terms of three years each, making for a maximum tenor of nine years.
Those who have served longer than these stipulated maximum tenors, by end of 2018, are to consequently step down.
The Bank of Ghana argues that the directives aim at ensuring that financial institutions under its regulatory purview practice good corporate governance, especially with regards to top risk management.
The source said poor practices in these regards have been identified by the central bank as the primary cause of the technical insolvency that have led to the revocation of the licenses of seven indigenous universal banks over the past 13 months.
The directives were initially announced in April this year and have since been upgraded in order to make them effective and encompassing, sources said.
© Bur-csa – N.A / From our regional correspondent Tamba Jean-Matthew III – African Daily Voice (ADV)