In terms of the Central Bank’s Road Map; Monetary and Financial Sector Policies, the mandatory Corporate Governance Rules for banks will become applicable from 2008.
There is much controversy over the perceived negative implications on the management of banks and even legal challenges have been filed by some banks. Most controversy appears to be on the following, with even charges being levelled that these rules have been adopted aimed at removing from the leadership of banks, individuals who are not in the good books as supporters or have annoyed the leadership of the Central Bank and those in governance of the nation;
•Mandatory retirement age
•Mandatory numbers of years as a director of a bank
•Limitation on the number of directorates
•Minimum number of meetings in an year to attend
•Independent directors and applicable definition
•Related party and conflicts of interests definitions
•Transition provisions
See full Article.
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