The Bank of Ghana, has issued a directive to cap the tenure of all Managing Directors or Chief Executive officers of regulated financial institutions at four years. However, this is renewable only for two additional terms of four years each.
The new directive, which takes immediate effect, also restricts the tenure of office of non-executive directors and Board Chairpersons and financial institutions to a limited term unlike the past when such positions could be occupied till retirement.
A revised transitional provision, issued on September 3 seeks to operationalize the directive that will limit the tenure of office of the topmost positions in banks and other deposit-taking institutions to only two terms.
The corporate governance directive was issued in March this year to among other things, improve governance practices, internal controls and risk management systems of financial institutions.
