made under Act 24 of , Act 11 of and Act 23 of The. Central Bank accepts no liability for any loss arising of its use. The updated version of the Act. The Aftermath of the Financial Crisis Y. Makanjuola Other Financial Institutions Act (BOFIA), the CBN governor could not exercise powers both to remove. 30 Apr. 31 Dec. 30 Apr. N’ N’ N’ . of these accounts in accordance with Section 27(5) of BOFIA (as.
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Among the things they quarrelled with in the suit was that the apex court acted beyond its powers in the revocation of the bank’s licence. He consequently removed their managing directors and executive directors and appointed replacements. Not satisfied with the action, some shareholders of Union Bank of Nigeria Plc, by way of originating summons, filed an action against the central bank and bofi governor, specifically challenging its powers to replace their executive directors.
They were accused of insider abuse and other offences ranging from recklessly granting loans totalling N billion that had gone bad.
It relied on the decision in Ndoma Egba v Chukwuogor. Notwithstanding anything contained in any law or memorandum and articles of association of a bank, where the Bank or an appointed person has, pursuant to an order under section 34 of this Decree assumed control of a bank whose bpfia capital is lost or unrepresented by available assets, the Bank may, with the approval of the President.
The ruling was not the first time that the CBN would be receiving a judicial imprimatur on banks in the country.
Nigeria: Shareholders Hail UBA’s Compliance of Bofia, CBN Rules –
Umar further bofai on the bank to look at ways of improving its shareholders’ fund to be in the region of trillion naira. Articles and commentaries that identify allAfrica.
Email required Address never made public. The court, after reproducing all the relevant provisions of BOFIA, held that the use of the word ‘any’ in Section 35 of BOFIA meant that the governor was not restricted to exercising only one of the powers specified in sub-section 2 which allows bofis the removal of directors, appointment of directors, capital injection, etc”but could indeed exercise same or all of the power specified in sub-section 2 of Section 35 of BOFIA.
This study has been embarked upon to clearly enumerate all the provisions on legal and regulatory requirements guiding the operations of banks in Nigeria and their financial reporting as stipulated in the Bank and Other Financial Institution Act BOFIA.
In affirming and upholding the governor’s powers, the court started by reiterating the paramount rule of statutory construction that a “statute is to be construed according to its manifest and expressed intention. The court finally recognised that the general rule is that he who has the power to hire has the power to fire, ” The paper, which also includes the section on supervision section 4 has been thoroughly structured and outlined to provide all information necessary for the purpose of study.
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Nigeria: Bofia – CBN’s Powers Get Court Affirmation –
Justice Archibong further observed that CBN Act was an Act of the National Assembly, which empowers the CBN to intervene where it finds that depositors’ funds are in danger, adding that he did not find where in the suit or the law where the CBN acted beyond its powers or did not comply with the provisions of the law on revocation of banking licences of the bank. Fill in your details below or click an icon to log in: According to him “We shareholders are happy with the dividend and bonus payment despite the global market downturn.
The shareholders who commented on the bank’s performance at the meeting said “For UBA not to pay fine to the CBN is an attestation of hard work, compliance of corporate governance and good quality leadership of both the Board and management”. The regulatory authorities, on their part, would further streamline the regulatory framework and strengthen the supervisory capacity to ensure a sound and efficient system.
We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Diversification of the productive base of the economy remains a fundamental challenge of economic management, and banks will increasingly be challenged to become more innovative in their intermediation function, and especially to increase financing to the productive sectors.
To address comments or complaints, please Contact us. NUPP and stated that in the context of which the word was used in Section 35 2 d ithe word “any” clearly indicates that there is no limit to the number of directors that the governor of the central bank is empowered to remove.
To find out more, including how to control cookies, see here: The issues to be treated will encompass enumeration of the various requirements of the Act and the challenges of compliance on the part of the banks.
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Nigeria: Bofia – CBN’s Powers Get Court Affirmation
To address comments or complaints, please Contact us. The court agreed that while “or” was generally construed disjunctively, blfia are instances where it is necessary to read and in place of or, and vice versa in order to carry out the intention of the legislature, and avoid absurd or impractical results.
Notify me of new comments via email. It would noted that following the conclusion of its Brand and Communication Transformation. They also argued that the revocation was tainted with malice and urged the court reverse the action.
AllAfrica is a voice of, by and about Africa – aggregating, producing and distributing news and information items daily from over African news organizations and our own reporters to bofoa African and global public.
The court, relying on the decision of the Supreme Court in NDIC v Okem Enterprises Ltd, held that “Where the word notwithstanding is used in a section of a statute as in sub-section 2 bofiz of Section 35, it is used to exclude an impinging or impending effect of any other provision of the statute or subordinate legislation so that the said section may fulfill itself.
The bank has made depositors of the failed banks it acquired happy and smiling. A further rationale for the Act was to ensure that banks and other obfia institutions played their primary role of financial intermediation effectively.