The Reserve Bank of Malawi Act: Key Provisions on the Board of Directors

Overview of Section 6: Board of Directors

The Board of Directors is a crucial component of the Reserve Bank of Malawi, responsible for overseeing the bank’s operations and making key decisions. According to Section 6 of the Reserve Bank of Malawi Act, the Board shall consist of the Governor, Deputy Governors, and at least four but not more than seven directors.

Eligibility Requirements

To be eligible for appointment as a director, an individual must possess knowledge or experience in fields such as economics, finance, financial markets, or law. The President appoints directors for a term of three years, with the option to re-appoint them for one more term.

Persons Not Eligible for Appointment as Directors

Section 7 of the Reserve Bank of Malawi Act outlines individuals who are not eligible for appointment as directors due to potential conflicts of interest or other reasons. These include:

• Members of Parliament
• Financial institutions, their directors, salaried officials, or employees
• Controlling parties of financial institutions
• Professional services providers to the Bank
• Public officials (except those mentioned in Section 6)
• Persons disqualified from acting as a director or official of a body corporate
• Persons adjudged bankrupt or made an arrangement with creditors
• Persons convicted of theft, dishonesty, fraud, forgery, or perjury

Resignation and Termination of Appointment

A director may resign their office by giving one month’s notice in writing to the President (Section 8). The appointment of a director shall immediately terminate if they:

• Become a member of Parliament
• Become a financial institution, or its director, salaried official, or employee
• Provide professional services to the Bank or a financial institution
• Are disqualified from acting as a director or official of a body corporate in Malawi
• Become a public official (except those mentioned in Section 6)
• Are adjudged bankrupt by a competent court in Malawi
• Make an arrangement with creditors or suspend payment to creditors in Malawi
• Are convicted of an offence of a kind referred to in Section 7(h) in Malawi
• Are removed from office in Malawi as mentioned in Section 7(i)

These provisions aim to ensure that the Board of Directors is comprised of qualified and independent individuals who can make informed decisions on behalf of the Reserve Bank of Malawi.