The Central Bank of Nigeria (CBN) has introduced a new code of corporate governance rules for Bureau De Change (BDC) operators in the country and one of the guidelines stated that government agencies have been barred from direct or indirect ownership in the BDC.
The code takes effect from December 1 2018, the apex bank said in a circular issued on Thursday, November 1, but dated October 26, 2018.
In the circular, signed by Mr. Kevin N Amugo, Director Financial Policy and Regulation Department, CBN and published on its website, the CBN said the new corporate governance regulation is to further strengthen the institutions and reposition them to perform their statutory roles.
The regulation said the Board shall be accountable and responsible for the performance and affairs of the BDC and members of the Board are severally and jointly liable for the activities for the BDC.
The new regulation also limits the number of family members that can be on the management of BDCs.
It said that “the positions of the Board Chairman and the MD/CEO shall be separate. No one person shall combine the two positions in any BDC at the same time. For the avoidance of doubt, no executive Vice Chairman shall be allowed in the Board structure.”
It also said “not more than two members of a family shall be on the board of a BDC at the same time. The expression ‘family’ includes director’s spouse, parents, children, siblings, cousins, uncles, aunts, nephews, nieces and in-laws.”
“Where the BDC is a member of a holding company, not more than two family members shall be allowed to serve on the Boards of the BDC and the holding company” and that “no two members of a family shall occupy the positions of Chairman and MD/CEO of a BDC.”
“To ensure continuity and injection of fresh ideas, Non-Executive Directors of BDCs shall serve for a maximum of three terms of four years each. The tenure of the MD/CEO of the BDC shall be in accordance with the terms of engagement for tenure of five years renewable every five years subject to CBN approval”.