Bank Charter: The Founding Document of a Bank

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The charter is the fundamental document that governs a bank’s operations, setting forth its powers, responsibilities, and obligations. Article 20 of the Armenian Law on Joint Stock Companies outlines the key aspects of a bank’s existence, including its name, location, organizational structure, and decision-making procedures.

Charter Provisions

The charter outlines the following essential provisions:

• The full and short brand name of the bank
• The location of the bank
• The organizational-legal type of the bank (e.g., joint-stock company)
• In the case of a joint-stock company, the types of stocks, number, nominal value, and rights of privileged stock owners
• The size of the statutory fund
• The structure, powers, and decision-making procedure of the managing bodies
• The procedure for preparing and conducting general meetings of founders and participants
• Information on bank branches and representations, as well as provisions for establishing and terminating them
• Powers delegated to the bank by its founder (in the case of a branch of a foreign bank)
• Rules for oversight over the bank by its founder (in the case of a branch of a foreign bank)
• Liquidation procedure
• Other provisions envisioned by law and regulations

Access to the Charter

Article 20 also states that any person can request access to the bank’s charter, additions, and amendments within five days. The bank must provide a copy of its current charter upon request, at a cost not exceeding the self-cost of the copy.

Adoption of Additions and Amendments

Additions and amendments to the charter, as well as adoption of new editions, require a 3/4 majority vote by the general meeting of participants.

Managing Bodies of the Bank

Article 21 outlines the managing bodies of a bank, which include:

• The general meeting of participants
• The board of directors (or chairman of directorate)
• The executive director

The rules for forming and procedures of these bodies are regulated by Armenian law and the charter of the bank.

Key Takeaways

• The charter is the founding document of a bank, outlining its powers, responsibilities, and obligations.
• The charter defines key aspects of a bank’s existence, including its name, location, organizational structure, and decision-making procedures.
• Any person can request access to the bank’s charter, additions, and amendments within five days.
• Additions and amendments to the charter require a 3/4 majority vote by the general meeting of participants.