NATIONAL SAVINGS AND CREDIT BANK ACT - 1972 (NRCD 38)

    • (1) On the coming into force of this Decree, the Ghana Savings Bank constituted under the Savings Bank Act, 1962 (Act 129) and existing immediately before the commencement of this Decree shall, subject to the provisions of this Decree, continue to operate under the name of the Post Office Savings Bank (hereinafter referred to as "the Bank") as a body corporate with perpetual succession and common seal, and may sue or be sued in its corporate name.

      (2) All assets and liabilities of and any property vested in the said Ghana Savings Bank immediately before the coming into operation of this Decree shall without further authority than this subsection vest in the Bank.

      (3) Every contract in respect of any matter subsisting between the said Ghana Savings Bank and any other person and in force immediately before the commencement of this Decree shall be deemed to subsist between the Bank and such other person.

      (4) The Head Office of the Bank shall be in Accra.

    • (1) Subject to the provisions of subsection (3) of this section the share capital of the Bank shall be six million cedis divided into shares of a nominal value of ten cedis each, of which 75 per centum shall be taken up by the Government and the remaining 25 per centum shall be issued to the public at such times, in such amounts and in such manner as the Board may determine subject to the provisions of this section.

      (2) The Government shall, on the establishment of the Bank, pay up thirty-three one-third per centum of the nominal value of the shares taken up by the Government and the remaining sixty-six two-thirds per centum shall remain uncalled for, for twelve calendar months from the date of the commencement of operations by the Bank.

      (3) Any such shares taken up by the Government may be sold by the Government and the proceeds of the sale shall be paid into the Consolidated Fund.

      (4) The Board established under section 4 of this Decree may from time to time, with the consent of the shareholders and with the prior approval of the Commissioner, increase the initial capital of the Bank and may divide the additional capital into shares of such nominal value as it may think fit.

      (5) The shares of the Bank not issued under the provisions of subsection (2) of this section may be issued from time to time on such terms as the Commissioner may direct.

    • The liability of any holder of shares in the Bank shall be limited to the amount unpaid on the shares by such holder.

    • (1) The operations of the Bank shall be managed and controlled by a Board of Directors, which may exercise all such powers as are not by this Decree required to be exercised by some other person or by the Bank at a meeting of shareholders.

      (2) The Board of Directors shall consist of a Chairman and the following, all of whom shall be appointed by the National Redemption Council-

      (a) a person appointed the Managing Director, under section 8(1) of this Decree;

      (b) a representative of the Ministry responsible for Finance;

      (c) three persons appointed on the recommendations of the Commissioner;

      (d) three persons elected by shareholders of the Bank from among their number.

      (3) A meeting of shareholders shall be convened as soon as may be convenient after the first issue of any shares otherwise than to the Government, for the purpose of electing directors under the provisions of subsection (2)(d) of this section (hereinafter referred to as "the elected directors") and thereafter on the holding of the annual general meeting, a person shall be elected to fill any vacancy in the office of elected director.

    • No person shall be qualified to be a director of the Bank:-

      (a) unless he is a citizen of Ghana or in the case of an elected director, unless he is domiciled in Ghana;

      (b) if he is a person required to be elected by the shareholders, unless he holds in his own right unencumbered shares of the Bank of the nominal value of not less than one thousand cedis;

      (c) if he is an undischarged bankrupt, having been adjudged or otherwise declared bankrupt under any law in force in Ghana or in any other country;

      (d) if he is a person adjudged to be of unsound mind;

      (e) if he is convicted of a felony or any offence involving dishonesty or moral turpitude and in each case, he has not been granted a free pardon;

      (f) if, being a person possessed of professional qualification, he is disqualified or suspended, otherwise than at his own request, from practising his profession in Ghana or in any other country by the order of any competent authority made in respect of him personally.

    • (1) A director appointed under subsection (2)(a) of section 4 of this Decree shall hold office for such period as may be specified by the National Redemption Council in his instrument of appointment.

      (2) The Chairman or a director appointed under subsection (2)(c) of section 4 of this Decree shall hold office for a period of one year.

      (3) At the annual general meeting of the Bank next following the first election of directors, and at every annual general meeting thereafter, the director elected at an annual general meeting who has held such office for the longest period since his last election shall retire; and as between directors elected on the same day the director to retire shall unless they otherwise agree, be decided by lot.

      (4) An elected director retiring at an annual general meeting shall retain his office until the close of the meeting.

      (5) Any director shall vacate his office-

      (a) on ceasing to be qualified for being a director of the Bank as required by the provisions of section 5 of this Decree;

      (b) in the case of the Chairman or a director appointed under subsection (2)(c) of section 4, if he, by notice in writing addressed to the Commissioner and copied to the Board, resigns his office;

      (c) in the case of a person appointed under subsection (2)(a) of section 4 of this Decree, if he ceases to be qualified for appointment under that subsection or if prior thereto the National Redemption Council by writing revokes his appointment.

      (6) Subject to section 5 of this Decree, a person ceasing to hold office as a director shall be eligible for reappointment.

      (7) If an elected director dies or vacates his office under the provisions of subsection (5) of this section, the Board may subject to the provisions of this section elect a person, for appointment under section 4 of this Decree, to hold office until the next annual general meeting.

    • (1) If an elected director or the Chairman or a director appointed under subsection (2)(c) of section 4 of this Decree is prevented by absence from Ghana, illness or other sufficient cause from performing the functions of his office:-

      (a) the National Redemption Council may, in the case of the Chairman or a person appointed under subsection (2)(c) of section 4 of this Decree, appoint to hold office in his place another person;

      (b) the National Redemption Council may, in the case of an elected director appoint another person nominated by the Board to hold his office.

      (2) A person appointed or elected to act in the place of the Chairman or a director under this section shall cease to hold office when the National Redemption Council or the Board, as the case may be, is satisfied that the original director is able again to perform functions of his office, or, on the date when the original director would have ceased to hold office in accordance with the provisions of this Decree, whichever is the earlier.

    • (1) There shall be a Managing Director of the Bank who shall be appointed by the National Redemption Council and shall hold office for a period not exceeding five years and on such terms and conditions as may be specified in his instrument of appointment.

      (2) A Managing Director shall be eligible for reappointment for a further period not exceeding five years on the termination of his appointment.

      (3) Subject to any direction of the Board on matters of general policy the Managing Director shall be responsible for the directions of the day-to-day business of the Bank and of its administration and organisation and control of all the employees of the Bank.

      (4) If the Managing Director is absent from Ghana or is otherwise incapacitated from performing duties of that office, the Board may authorise an employee of the Bank to exercise, for the time being, all the duties and powers of the Managing Director.

    • (1) The Bank shall have a fund to be known as the "Reserve Fund".

      (2) There shall be paid into the Reserve Fund any money received by the Bank on the purchase of shares by the Government which are in excess of the nominal value thereof.

      (3) The Bank shall also make payments into the Reserve Fund in accordance with section 7 of the Banking Act, 1970 (Act 339).

    • (1) Contracts on behalf of the Bank may be made as follows:-

      (a) a contract which, if made between private persons would be by law required to be in writing and under seal, may be made on behalf of the Bank in writing under the common seal of the Bank;

      (b) a contract which, if made between private persons would be by law required to be in writing, may be made on behalf of the Bank in writing, signed by any person acting under its authority, express or implied;

      (c) a contract which if made between private persons would by law be valid although made by parol only, and not reduced into writing, may be made by parol on behalf of the Bank by any person acting under its authority, express or implied.

      (2) A contract made in accordance with this section shall be effectual in law, and shall bind the Bank and its successors and all other parties thereto.

      (3) A contract made in accordance with this section may be varied or discharged in the same manner in which it is authorised by this section to be made.

      (4) The Board may, by writing under its common seal empower any person, either generally or in respect of any specified matters, as its attorney to execute deeds on its behalf in any place not situate in Ghana and a deed signed by such an attorney on behalf of the Bank and under his seal shall bind the Bank and have the same effect as if it were under its common seal.

    • The Bank is authorised to carry on and transact the following kinds of business namely:-

      (a) the paying, receiving, collecting and remitting of money, bullion and securities on behalf of the Government, and the undertaking and the transacting of any other business which the Government may from time to time entrust to the Bank;

      (b) the advancing and lending of money on the security of-

      (i) any stocks or other security for money issued by the Government;

      (ii) stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest money by any law for the time being in force in Ghana or in any other country;

      (iii) goods which, or the documents of title to which, are deposited with, or assigned to, the Bank as security for such advances or loans;

      (iv) goods which are hypothecated with the Bank as security for such advances or loans, if so authorised by special directions of the Board; and

      (v) debentures of companies with limited liability whether incorporated in Ghana or outside Ghana; provided that where the original security is one of those specified in sub-paragraphs (i) and (ii) of this paragraph, fully paid shares of companies with limited liability or immovable property or documents of titles thereto may be accepted as collateral security;

      (c) the granting of loans or overdrafts with or without security, to such extent as may be prescribed by bye-laws not inconsistent with the provisions of the Banking Act, 1970 (Act 339);

      (d) the selling and realisation of the proceeds of sale of any stocks, funds, shares, securities, debentures, promissory notes or goods which, or the documents of title to which, have been deposited, pledged or hypothecated with, or assigned or transferred to, or which are held by the Bank or over which the Bank is entitled to any lien or charge in respect of any loan or advance or any debt or claim of the Bank, and which have not been redeemed in due time in accordance with the terms and conditions (if any) of such deposits, pledge, hypothecation, assignment or transfer;

      (e) the selling and realisation of all property, whether movable or immovable which may in any way come into the possession of the Bank in satisfaction or part satisfaction of any of its claims, and the acquisition and holding of, and generally the dealing with, any right, title or interest in any property, movable or immovable, which may be the Bank's security for any loan or advance or may be connected with any such security;

      (f) the drawing, accepting, discounting, buying and selling of bills of exchange and other negotiable securities;

      (g) the making, issuing and circulating of Bank drafts, travellers cheques and letters of credit, to order or otherwise than to the bearer on demand;

      (h) the drawing of bills of exchange and the granting of letters of credit payable out of Ghana;

      (i) the buying of bills of exchange payable out of Ghana at any usance not exceeding six months;

      (j) the purchase and sale of telegraphic transfers whether payable in Ghana or elsewhere;

      (k) the investing of the funds of the Bank in any of the securities specified in sub-paragraphs (i) and (ii) of paragraph (b) of this section and converting them into money when required, and altering, converting and transposing such investment for or into others of the investments above specified; and to make its investment services available to the public on commission and to deal on the Ghana Stock Exchange Market through the Government broker or the Bank's own broker;

      (l) the transacting of pecuniary agency business on commission and the entering into of contracts of indemnity, suretyship or guarantee with specific security or otherwise;

      (m) the acting as agent on commission in the transaction of the following kinds of business, namely:-

      (i) the buying, selling, transferring and taking charge of any securities, or shares in any public company;

      (ii) the receiving of the proceeds whether principal, interest or dividends, of any securities or shares;

      (iii) the remittance of such proceeds by bill of exchange or telegraphic transfer payable either in Ghana or elsewhere;

      (n) the buying and selling of gold and silver whether coined or uncoined;

      (o) the acceptance of the charge of valuables or securities on such terms as may be agreed upon;

      (p) the borrowing of money for the purpose of the Bank's business, and the giving of security for money so borrowed by pledging assets or otherwise;

      (q) the opening of an account with or the making of an agency agreement with, and the acting as agent or correspondent, of, the Bank of Ghana or a Bank incorporated in any country outside Ghana;

      (r) acting as executor and trustee of wills, settlements and under instruments securing stocks, debentures and debenture stock, however and whenever constituted and administering trusts of all forms;

      (s) engaging in development financing or acquiring or taking by subscription or by purchase or otherwise and the holding of, shares or stock of and investing in the securities of any company engaged in development financing or any undertaking in Ghana or elsewhere having similar objects as may be deemed by the Bank to be likely to advance, either directly or indirectly the interests of the Bank;

      (t) the issuing of premium Savings Bonds which shall be eligible for inclusion in draws for cash prizes;

      (u) generally, the doing of or dealing with, all such matters and things as may be incidental or subsidiary to the transacting of the various kinds of business hereinbefore specified.

    • (1) The Bank may use any branch of the General Post Office as its agent on commission, for collection and payment of deposits.

      (2) The Board may from time to time open and maintain branch offices for transacting the business of the Bank elsewhere than at the Head Office or branches of the General Post Office.

    • (1) Interest shall be payable on deposits at such rate as may be fixed from time to time by the Board.

      (2) The Interest shall not be payable on any amount less than two cedis and shall not commence to accrue until the first day of the month next following the day of deposit, and cease on the last day of the month preceding that in which such deposit shall be withdrawn.

      (3) Interest on deposits shall, subject to the provisions of subsection (2) of this section, be calculated to the thirty-first day of March in every year or such other day as may be determined by the Board and shall then be added to and become part of any principal moneys remaining on deposit.

    • The Bank shall not transact any kind of banking business other than as specified in section 11 of this Decree and in particular the Bank shall not make any loan or advance on the security of its own shares.

    • Any act done and preliminary expenses sanctioned by the Commissioner in connection with the formation of the Bank shall have the same effect and validity as if such acts had been done and such expenses incurred by the Board; and the Board may continue any action or thing commenced by the Commissioner remaining unfinished at the date of coming into force of this Decree as if such action or thing had been initiated by the Board.

    • (1) The provisions of the Schedule to this Decree (which may be cited as the Post Office Savings Bank Regulations) shall, in respect of the matters to which they relate, govern the powers, duties and responsibilities of the Bank, the Board and the employees and agents of the Bank and the procedure of the Bank and the Board.

      (2) The provisions of the Schedule may be added to, amended or revoked by regulations made, in respect of the matters to which the Schedule relates, by the Commissioner with the prior approval of the Executive Council.

    • The Board shall, with the prior approval of the Commissioner make bye-laws not being inconsistent with this Decree regulating the following matters, namely:-

      (a) the maximum amounts which may be advanced or lent to any individual, body of persons or partnership, or to any company or association with limited liability, without the security mentioned in sub-paragraphs (i) and (ii) of paragraph (b) of section 11 of this Decree;

      (b) the extent to which accounts may be overdrawn without security;

      (c) the books and accounts to be kept at the Head Office and branches of the Bank;

      (d) the remuneration of the directors;

      (e) the conduct and defence of legal proceedings and the manner of signing pleadings;

      (f) the conduct of the business of the Bank generally.

    • A document may be served on the Bank by leaving it at or sending it by post to the Head Office of the Bank.

    • The Bank shall be exempt from any tax or duty imposed by the Income Tax Decree, 1966 (NLCD 78) for so long as the General Reserve Fund is less in amount than twice the paid-up capital.

    • The provisions of the Companies Code, 1963 (Act 179) shall not apply to the Bank except in so far as the Commissioner may with the prior approval of the Executive Council by legislative instrument direct.

    • Nothing in this Decree shall affect or be deemed to affect the rights of the Republic or the rights of any body politic or corporate or of any other persons except such as are mentioned in this Decree and those claiming by, from or under them.

    • In this Decree, unless the context otherwise requires-

      "Annual General Meeting" means an annual meeting of shareholders held in accordance with the provisions of this Decree;

      "Bank" means the body corporate established under the provisions of section 1 of this Decree;

      "Board" means the Board of Directors constituted as provided in section 4 of this Decree;

      "Government" means the Government of Ghana;

      "Commissioner" means the Commissioner responsible for Finance.

    • The Ghana Savings Bank Act, 1962 (Act 129) is hereby repealed.

    • This Decree shall come into force on such a day as the Commissioner may by legislative instrument appoint.