THE BANK OF GHANA ACT, 2002 (ACT 612)
2. PURPOSE OF THE ACT
3. ADMINISTRATION OF THE BANK
4. OBJECTS AND FUNCTIONS OF THE BANK OF GHANA
5. POWERS OF THE BANK OF GHANA
6. RIGHTS AND DUTIES OF EMPLOYEES
The Bank of Ghana was established as a Central Bank of the Nation on 4th March 1957 by a British Ordinance (No.34 of 1957) passed by the British Parliament.
Since then the Bank of Ghana experienced legislative changes which include:
i. The Bank of Ghana Act, 1963(Act 182) which replaced the 1957 Ordinance.
ii. The Bank Ghana Law, 1992 (PNDC L 291) which replaced the 1963 Act (Act 182).
iii. The Bank of Ghana Act, 2002 (Act 612) which replaced PNDCL 291.
PURPOSE OF THE ACT
The purpose of the Act is to amend and consolidate the law relating to the Bank of Ghana and to implement Articles 183 and 184 of the 1992 constitution relating to the Bank.
ADMINISTRATION OF THE BANK
Board of Directors
The governing body of the Bank is the Board of Directors consisting of
a) The Governor of the Bank who shall be the chairperson
b) The first and second deputy Governors appointed under section 17
c) One representative of the Ministry of Finance and
d) Eight other directors appointed by the President in consultation with the Council of State (section 8 of Act 612)
REMOVAL FROM THE BOARD
A person shall cease to hold office as a board member if that person
a) Ceases to be a citizen of Ghana
b) Becomes a person of unsounded mind or incapable of carrying out the duties of that member
c) Has entered into terms with any person for payments of his or her debts or has been declared insolvent
d) Is convicted of a felony or an offence involving dishonesty
e) Is guilty of gross misconduct in relation to the duties of that member or
f) In the case of a person possessed of professional qualification, that member is disqualified or suspended from practicing his or her profession by the order of a competent authority, made in respect of that member or cease to be a member of that profession otherwise than at request of that member.
VACANCY ON THE BOARD
Where a member dies, resigns or otherwise vacates office before the completion of the term of office another person shall be appointed
a) In the case of the Governor or a deputy Governor, for period of four (4) years.
b) In the case of any other member for the unexpired period of the member. (section 13 of Act 612)
MEETINGS OF THE BOARD
Section 14(2) of Act 612 states that:
The Governor shall preside at the meetings of the board and
a) In the absence of the Governor , the first deputy Governor shall preside, or
b) In the absence of the Governor and the first deputy Governor , the second deputy Governor shall preside
This provision makes it mandatory for a meeting of the board to be presided over either by the Governor, the first deputy Governor or the second deputy Governor.
Section 14(3) of Act 612 also provides that the quorum for a meeting of the board shall be six (6) members including the Governor or deputy Governor.
OBJECTIVES AND FUNCTIONS OF THE BANK
Under section 3 of Act 612 the primary objectives of the Bank is to maintain stability in the general level of prices and without prejudice to the foregoing, to support the general economic policy of the Government of Ghana and to promote economic growth and effective and efficient operation of banking and credit systems in Ghana, independent of instructions from the Government or any another authority.
The functions of the Bank of Ghana are set out in section 4(1) of Act 612 as follows:
a) Formulate and implement monetary policy aimed at achieving the objective of the Bank
b) Promote by monetary measures the stabilization of the value of the currency within and outside Ghana...
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