AGRICULTURAL DEVELOPMENT CREDIT AND CO-OPERATIVE BANK ACT - 1965 (ACT 286)
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(1) A bank called the Agricultural Development Bank is hereby established to carry out the purposes of this Act. [As amended by Agricultural Development Bank Act, 1965 (Amendment) Decree 1967 (NLCD 182) s. 2].
(2) The Bank shall have perpetual succession and a common seal and may sue or be sued in its corporate name; and for and in connection with the purposes of this Act, may, subject to the limitations contained in this Act relating to the business which may be carried on by the Bank, purchase, hold, manage or dispose of movable or immovable property, and may enter into such contracts as may be expedient.
(3) [Repealed by Agricultural Development Bank Act 1965 (Amendment) Decree, 1967 (NLCD 182)].
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The authorised share capital of the Bank shall be thirty million New Cedis divided into one hundred and fifty thousand shares of a nominal value of two hundred New Cedis each to be issued on the authority of the Board of Directors.[As substituted by Agricultural Development Bank Act, 1965 (Amendment) Decree 1967 (NLCD 182) s. 3].
(2) Not less than fifty-one per centum of the shares issued at any time shall be subscribed by the Government and the remaining shares, if any, shall be offered to the Bank of Ghana, Commercial Banks, Councils established under the Local Government Act, 1961 (Act 54), co-operative societies, and other institutions approved by the Minister, in such proportion and on such terms and conditions as the Minister may determine at the time of each issue.
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Subject to the prior approval of the Minister, the authorised share capital may be increased from time to time by the Bank. [As amended by Agricultural Development Bank Act, 1965 (Amendment) Decree 1967 (NLCD 182) s. 4].
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(1) The Managing Director shall be a person of recognised financial or banking experience and shall be appointed by the Member of the Council responsible for Finance; he shall be eligible for re-appointment for a period not exceeding five years on such salary and terms and conditions of service as may be specified in his letter of appointment. [As amended by the Agricultural Development Bank Act, 1965 (Amendment) Decree, 1967 (NLCD 182) s. 6]
(2) The Managing Director shall be the Chief Executive Officer of the Bank and shall on behalf of the Board direct and control the day to day affairs of the Bank subject to such regulations as the Board may make under this Act.
(3) Except as otherwise directed by the Minister, the Managing Director shall devote his whole time to the affairs of the Bank.
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In the event of a casual vacancy occurring in the office of a Director, a new Director shall, subject to the provisions of this Act, be appointed in the same manner as his predecessor for the remainder of the term of such predecessor.
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(1) No person shall be qualified to be appointed a Director of the Bank who, having been declared an insolvent or a bankrupt under any law in force in Ghana or in any other country, is an insolvent, or bankrupt, who has not been discharged.
(2) A Director of the Bank shall cease to hold office if:-
(a) he becomes a person of unsound mind or incapable of carrying out his duties;
(b) he is declared an insolvent or a bankrupt under any law in force in Ghana or in any other country or compounds with his creditors;
(c) he is convicted of a felony or any offence involving fraud or dishonesty;
(d) he is guilty of serious misconduct in relation to his duties;
(e) in the case of a person possessed of professional qualifications, he is disqualified or suspended, otherwise than at his own request, from practising his profession in Ghana or in any other country by order of any competent authority made in respect of him personally, or
(f) he absents himself from three consecutive meetings of the Board without leave of absence from the Chairman, or in the case of the Chairman, from the Member of the Council responsible for Finance. [As substituted by Agricultural Development Bank Act, 1965 (Amendment) Decree, 1967 (NLCD 182) s. 8].
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(1) The Board shall meet as often as the business of the Bank requires but not less frequently than once in each month.
(2) No business of the Board shall be transacted except at a meeting at which a quorum of four Directors are present. [As substituted by Agricultural Development Bank Act, 1965 (Amendment) Decree, 1967 (NLCD 182) s. 9(1)].
(3) The meetings of the Board shall be held at such time and place as may be determined by the Chairman. [As amended by Agricultural Development Bank Act, 1965 (Amendment) Decree, 1967 (NLCD 182) s. 9(2)].
Provided that until regulations are made in this behalf under this Act such meetings shall be convened by the Chairman.
(4) Any meeting of the Board shall be presided over by the Chairman and in his absence, by the Managing Director or in the absence of the Managing Director, by a member chosen for that purpose by the Directors from amongst their number present at such meeting. [As amended by Agricultural Development Bank Act, 1965 (Amendment) Decree 1967 (NLCD 182) s. 9(3)].
(5) At every meeting of the Board, each Director shall have one vote, and in the event of an equality of votes, the person presiding shall have a second or casting vote. [As amended by Agricultural Denvelopment Bank Act, 1965 (Amendment) Decree, 1967 (NLCD 182) s. 9(4)].
(6) No act or proceedings of the Board shall be invalidated by reason only of the existence of a vacancy among the members thereof. [As amended by Agricultural Credit and Co-operative Bank Act, 1965 (Amendment) Decree 1967 (NLCD 182) s. 9(5)].
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The Bank may undertake, if necessary, in collaboration or consultation with official or non-official authorities, both or either of the following functions:-
(a) any research on agricultural credit, marketing of agricultural produce, agricultural credit co-operative societies, cottage industries and other similar subjects; and
(b) the provision of training facilities, including the establishment of training institutes, for the benefit of its personnel and those of co-operative societies and other bodies corporate which may have financial relations with the Bank.
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Notwithstanding any agreement to the contrary, the Bank may by giving notice, require any loan to be paid in full forthwith to the Bank in any of the following circumstances:-
(a) where the borrower has failed to comply with any term of the agreement under which the relevant loan, advance or credit has been granted;
(b) where in the opinion of the Bank false or misleading information on any material particular has been given in the application for the relevant loan, advance or credit or in any other statement or communication made in connection with any loan, advance or credit granted;
(c) where the property mortgaged, hypothecated or assigned to the Bank as security for the advance, loan or credit is not maintained, in proper condition, to the satisfaction of the Bank or its value as estimated by the Bank has depreciated by more than twenty per centum, and further security to the satisfaction of the Bank has not been given within the time specified by the Bank;
(d) where without the permission of the Bank, any property pledged, mortgaged, hypothecated or assigned to the Bank is leased or rented to a third party or is in any way charged, disposed of or removed from the place where it was at the time the loan, advance, or credit was granted;
(e) where the loan is not used for the purpose for which it was granted, or for any other reason it is necessary in the opinion of the Bank to protect its interests.
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(1) Where any borrower who is, by the terms of an agreement under any liability to the Bank, makes default in repayment or otherwise fails to comply with such terms, the default or failure not being due to natural calamity, the Bank may, subject to any regulations made in this behalf under this Act, take over the management of the business of the borrower and sell or realise any property pledged, mortgaged, hypothecated or assigned by the borrower to secure his liability to the Bank.
(2) Subject to any prior claim of the Government and to any claim in respect of rent, any debt or liability owed to the Bank by any borrower as specified in subsection (1) of this section shall be a first charge:-
(a) upon any crops or other agricultural produce raised in whole or in part by means of the loan obtained from the Bank by the borrower, and
(b) upon any cattle, fodder for cattle, agricultural or industrial implements, or raw materials for manufacture, or upon workshops, stores or places of business purchased by such borrower in whole or in part with the proceeds of any loan.
(3) Sums due from a co-operative society and recoverable under subsection (1) of this section may be recovered in accordance with the provisions of law for the time being in force relating to the recovery of such sums.
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The Bank may with the approval of the Minister, borrow, raise or guarantee any sum of money from any source whether in or outside Ghana, upon such terms and conditions as it may deem fit; and for the purpose of securing the same and interest thereon create, issue, make or give any bonds or debentures, or create a mortgage or charge on the whole or part of the property, rights, present or future of the Bank.
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(1) The Minister may in writing, in the name and on behalf of the Government or any agent thereof, on such terms and conditions as may be determined by the Minister;
(a) guarantee, or
(b) agree to repay,
loans raised by the Bank from any international financial organisation or from any foreign financial institution.
(2) Loans guaranteed or agreed to be repaid under subsection (1) of this section may be denominated in foreign currency.
(3) All moneys payable under any guarantee or agreement under this section shall be charged on the Consolidated Fund.
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(1) The Bank may establish, or be entrusted with the administration of special funds which are designed to serve a particular purpose. It may receive, hold, use, commit or otherwise dispose of resources appertaining to such special funds.
(2) The Bank shall whenever requested to manage any funds under subsection (1) of this section maintain separate records or accounts for such funds and shall specify them separately on the balance sheets and other financial records of the Bank.
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(1) The Bank shall establish a fund to be called the General Reserve Fund and create from time to time such other reserves as the Board may determine with the prior approval of the Minister.
(2) After making adequate provisions for bad and doubtful debts, depreciation of assets, contribution to staff and superannuation funds and other contingencies and for any other purpose to which the profits of the Bank may properly be applied, there shall be transferred to the General Reserve Fund:-
(a) the whole of the net profits of the Bank, if the amount of moneys in such fund is less than one-quarter of the paid up capital of the Bank; [As amended Agricultural Development Bank Act, 1965 (Amendment) Decree 1967 (NLCD 182) s. 13].
(b) three-quarter of the net profits of the Bank, if the amount of moneys in such Fund is less than one-half of the paid up capital of the Bank; [As amended Agricultural Development Bank Act, 1965 (Amendment) Decree 1967 (NLCD 182) s. 13].
(c) one-half of the net profits of the Bank if the amount of moneys in such Fund is less than the paid up capital of the Bank; [As amended Agricultural Development Bank Act, 1965 (Amendment) Decree 1967 (NLCD 182) s. 13].
(d) one-quarter of the net profits of the Bank if the amount of moneys in such Fund is not less than the paid up capital of the Bank; and [As amended Agricultural Development Bank Act, 1965 (Amendment) Decree 1967 (NLCD 182) s. 13].
(e) any moneys thereafter remaining, after the payment of dividends declared by the Board.
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(1) The Bank shall not declare nor pay any dividends in excess of four per centum per annum on shares issued other than to the Government at any time when the amount of moneys in the general reserve fund is less than one-half of the paid up capital of the Bank. [As amended Agricultural Development Bank Act, 1965 (Amendment) Decree 1967 (NLCD 182) s. 14 (1) (2) (3)].
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(1) An auditor shall be elected and his remuneration fixed by the Board in consultation with the Minister.
(2) If any casual vacancy occurs in the office of auditor, the vacancy shall be filled by the Board in consultation with the Minister.
(3) An auditor shall be eligible for re-election.
(4) Without prejudice to the foregoing provisions of this section, the Minister may at any time, in his absolute discretion request the Auditor-General or such other auditors as the Minister may appoint, to examine and report on the accounts of the Bank and the Bank shall provide all necessary and proper facilities therefor.
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(1) The Board shall cause proper accounts and other records in relation thereto to be kept; and the books of accounts of the Bank shall be balanced on the thirty-first day of December of each year and shall be audited by the auditor of the Bank.
(2) The annual statement of accounts as audited shall be signed by the Chairman, two directors, the Chief Accountant and the Secretary and shall be sent to the Minister not later than three months after the close of each financial year.
(3) The annual statement of accounts shall as soon as may be practicable, be laid by the Minister before Parliament and shall be published in the Gazette.
(4) The Bank shall:
(i) exhibit throughout the year in a conspicuous position in every office or branch of the Bank in Ghana a copy of its last audited balance-sheet;
(ii) on or about the date of the presentation of the accounts to the shareholders in general meeting, cause a copy thereof to be published in a daily newspaper circulating in Ghana;
(iii) not later than seven days prior to the date of the general meeting send a copy thereof to each shareholder entitled to attend such meeting.
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The liability of any holder of shares in the Bank shall be limited to the amount, if any, unpaid on the shares held by such holder. [As substituted by Agricultural Development Bank Act, 1965 (Amendment) Decree 1967 (NLCD 182) s. 15].
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(1) Any person who contravenes the provisions of this Act, for which no other penalty has been expressly provided in this Act, or knowingly makes an incorrect statement in a document submitted by him or an incorrect reply to a question asked of him for the purpose of this Act, or uses any loan or advance for any purpose other than that for which it was granted by the Bank, shall be guilty of an offence and shall be liable, after summary trial to a fine of two hundred pounds or to a term of imprisonment, not exceeding one year or to both such fine and imprisonment.
(2) In the case of an offence by a body of persons:-
(a) where the body of persons is a body corporate every director and officer of the body corporate shall be deemed to be guilty of that offence;
(b) where the body of persons is a firm, every partner of that firm shall be deemed to be guilty of that offence; and
(c) where such body is any other body of persons, every individual constituting such body shall be deemed to be guilty of that offence:
Provided that no such person shall be deemed to be guilty of the offence, if he proves that such offence was committed without his knowledge or that he exercised diligence to prevent the commission of the offence.
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(1) No person, of whatever designation, participating in the direction, administration, control and the running of the Bank shall disclose any written or oral information which he has obtained by virtue of any function of his under this Act, unless he is otherwise called upon to give evidence in a court of competent jurisdiction or to fulfil any obligation imposed by law or in the discharge of any such function.
(2) Any person who contravenes this section shall be guilty of an offence and shall, on summary conviction, be liable to imprisonment for a term of five (but not less than five) years.
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(1) The Member of the Council responsible for Finance; may, by legislative instrument, make regulations for any matter in respect of which regulations are required to be made under this Act and for carrying out the principles and provisions of this Act. [As amended by Agricultural Development Bank Act, 1965 (Amendment) Decree 1967 (NLCD 182) s. 16 (1)].
(2) Without prejudice to the provisions of subsection (1), such regulations may provide for all or any of the following matters:-
(a) the manner in which the conditions subject to which the shares of the Bank may be held and transferred, and generally all matters relating to the rights and duties of the shareholders;
(b) the duties and powers of the Chairman;
(c) the manner, conditions and terms of issue and redemption of funds and debentures;
(d) the conditions on which advances, loans and credit may be granted to either or both the following description of persons-
(i) any person discharging any function under this Act;
(ii) the individuals, co-operative societies and other bodies corporate with whom such person or his relatives is or are connected as partners, directors, managers, servants, shareholders or otherwise;
(e) the conduct of business at the meetings of the Board. [As amended by Agricultural Development Bank Act, 1965 (Amendment) Decree 1967 (NLCD 182) s. 16 (2)].
(f) the procedure for the recovery of loans and other debts due to the Bank;
(g) the disclosure of interest, direct or indirect, of a Director in any application for loans;
(h) the recruitment of the employees of the Bank, the terms and conditions of their service, the constitution and management of Provident Funds for the employees of the Bank and all other matters connected with any of these matters;
(i) the duties and conduct of employees and agents;
(j) the form of returns and statements;
(k) preparation of annual estimates of income and expenditure of the Bank and their submission to the Board and the Minister; and
(l) the registration of farmers who have incurred debts to such other farmers or other persons, the repayment of such debts by loans from the Bank and for other matters connected with such repayment, save as otherwise expressly provided in this Act.
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The Board may, with the prior approval of the Minister make bye-laws not inconsistent with the provisions of this Act regulating its functions under this Act including the following, namely:
(a) the operating policy, rules and procedures, and conduct of the general business of the Bank;
(b) the books and accounts to be kept at the head office and branches of the Bank;
(c) the conduct and defence of legal proceedings and the manner of signing pleadings; and
(d) the constitution and management of a provident fund for the employees of the Bank. [As inserted by Agricultural Development Bank (Amendment) Act, 1970 s. 1].
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In this Act, unless the context otherwise requires:-
"agriculture" includes the raising of crops, horticulture, forestry, fishery, animal husbandry, poultry farming, dairy farming, bee-keeping and agriculture;
"agriculturist" means any person engaged in agriculture, farming or in the development of agriculture or agricultural produce, or in the storage, warehousing, marketing or processing of agricultural produce;
"Bank" means the Development Bank established by section 1 of this Act; [As amended by Agricultural Development Bank Act, 1965 (Amendment) Decree 1967 (NLCD 182) s. 17 (1)].
"Chairman" means Chairman of the Board of Directors;
"co-operative society" means any Co-operative Society registered in Ghana under any law for the time being in force relating to the registration of Co-operative Societies;
"cottage industry" means an industry which is carried on wholly or mainly by the members of a family either as a full-time occupation or by a group of such persons who have formed themselves into a co-operative society; and
"Council" means the National Liberation Council [As substituted by Agricultural Development Bank Act, 1965 (Amendment) Decree 1967 (NLCD 182) s. 17 (2)].
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All rights, assets and property held for, or on behalf of, the Rural Credit Department of the Bank of Ghana, and all liabilities of the said Department shall be deemed to have been vested, with effect from August 1, 1965, in the Agricultural Credit and Co-operative Bank, in this Decree referred to as the Agricultural Development Bank. [As substituted by Agricultural Development Bank Act, 1965 (Amendment) Decree 1967 (NLCD 182) s. 18].
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The principal Act is hereby amended by the substitution for the word Minister, wherever that word occurs therein, of the words Member of the Council responsible for Finance. [As inserted by Agricultural Credit and Co-operative Bank Act, 1965 (Amendment) Decree 1967 (NLCD 182) s. 19].
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