Financial Institution Directors Must Meet Regularly
The Guyana government has enacted regulations requiring directors of financial institutions to hold regular meetings to ensure efficient management.
Meeting Frequency and Conduct
According to Section 17 of the Co- operative Financial Institutions Act (Cap. 75:01), directors must meet at least once a month, and as often as necessary for the transaction of business. These meetings can be held at any time and place determined by the directors themselves.
- The Chairman has the power to call a special meeting at any time.
- Any three directors can request a special meeting within seven days.
Quorum Requirements
A quorum is deemed present when one-half of the number of directors attend a meeting. This ensures that important decisions are made with sufficient representation from the institution’s leadership.
Meeting Minutes and Attendance
Proper minutes of each meeting must be kept by the Secretary and confirmed by the Chairman, Deputy Chairman, or other member presiding at the meeting as soon as practicable thereafter.
Co-Option of Expertise
Financial institutions can co-opt individuals with expertise in specific areas to attend meetings for advisory purposes. However, these individuals will not have voting rights.
Notice and Minutes Submission
The Secretary must submit notices of all director meetings to the Administration, as well as furnish them with copies of meeting minutes within two weeks after each meeting.
Committees and Delegation
Financial institutions are empowered to appoint committees to examine specific matters or delegate powers to directors or committees for effective operation.
Staff Employment and Remuneration
The employment of staff, including the General Manager, Secretary, and other officers and employees, is governed by regulations. The remuneration and terms of employment will be determined by the financial institution with the approval of the Administration.
Conflict of Interest and Confidentiality
To maintain transparency and confidentiality:
- Officers and employees must not engage in outside employment or activities that may compromise their duties to the institution.
- They are prohibited from disclosing confidential information acquired during the exercise of their functions.
Rules and Regulations
Financial institutions can make rules not inconsistent with this Act or other applicable laws to govern their proceedings, transactions, and operations. These rules will be subject to approval by the Administration.
In summary, these regulations aim to ensure that financial institutions are managed efficiently and effectively, while maintaining transparency and confidentiality.