Managing Bodies of a Bank: Key Provisions

The Law on Banks and Banking Activity in Armenia outlines the managing bodies of a bank, ensuring transparency and accountability. Here are the key points from Article 21:

1. Managing Bodies of a Bank

• The supreme body of bank management is the general meeting of participants.
• Other managing bodies include:
  • The board of the bank (hereinafter - the board)
  • The executive director of the bank or the chairman of directorate (hereinafter – executive director), if the charter provides for – the board of directors or the directorate (hereinafter – the directorate)

2. Formation and Procedures

• The rules of formation and procedures of the bank’s managing bodies and the scope of authorities shall be regulated by:
  • The Armenian Law on Joint Stock Companies
  • The charter of the bank, unless this Law provided otherwise.

3. Mandatory Managing Bodies

Regardless of their organizational-legal type, banks must have:

• The chief accountant
• The department of internal audit
• The managing bodies specified in point 1 of Article 21

These provisions ensure that all banks operating in Armenia have a clear and standardized framework for governance and management. By understanding these key points, stakeholders can better navigate the regulatory environment and promote transparency in bank operations.