National Investment Bank Act, 1963 Act 163 (Revised Edition)

ACT 163
National Investment Bank Act, 1963
ACT 163
NATIONAL INVESTMENT BANK ACT, 1963
ARRANGEMENT OF SECTIONS
Establishment ofBank
Establishment
SECTION
1. Establishment of the Bank.
2. Offices of the Bank.
Objects and Functions
3. Objects of the Bank.
4. Functions of the Bank.
Capital and Reserve
5. Authorised capital.
6. Payment of dividends.
7. Limitation of liability of shareholders.
8. General reserve fund.
9. Borrowing powers.
10. Guarantees and loans repayable by Government.
Administration
The Board
11. Board of directors.
12. Qualifications for appointment.
13. Term of office.
14. Functions of the Board.
15. Meetings of the Board.
Managing Director and Deputy Managing Director
16. The Managing Director and Deputy Managing Director.
Accounts and Audit
17. Accounts and audit.
18. Appointment of auditor.
19. Functions of auditor.
Miscellaneous
20. Relations with the Government.
21. Relations with other banks.
22. Liquidation of Bank.
23. Service of documents.
VI-1051 [Issue 1]

Miscellaneous
20. Relations with the Government.
21. Relations with other banks.
22. Liquidation of Bank.
23. Service of documents.
VI-1051 [Issue 1]

ACT 163
National Investment Bank Act, 1963
SECTION
24. 25. 26. 27. 28. 29. 30. Commencement of business. Preliminary acts and expenses. Internal Revenue Act 2000. Companies Act, 1963. Regulations. Bye-Laws,
interpretation. ACT 163
NATIONAL INVESTMENT BANK ACT, 19631
AN ACT to provide for the establishment of a National Investment Bank and for
related matters. Establishment ofBank
Establishment
1. Establishment of the Bank
(1) There shall be established a body corporate to be known as the National Invest
ment Bank. (2) The Bank shall have perpetual succession and a common seal and may sue and be
sued in its corporate name. (3) The Bank may, for and in connection with its functions under this Act, purchase,
hold, manage and dispose of property and may enter into contracts and any other transac
tions as may be expedient. (4) The application of the seal of the Bank on a document shall be authenticated by
the signature of the Managing Director and two other directors of the Bank; and in the
absence of the Managing Director the person appointed for the time being under subsec
tion (2) of section 16 shall sign the document.

Bank; and in the
absence of the Managing Director the person appointed for the time being under subsec
tion (2) of section 16 shall sign the document.

(5) The signatures of the Managing Director and the other two directors shall be in
dependent of the signing by any other person who may sign the document as a witness. 2. Offices of the Bank
(1) The head office of the Bank shall be at Accra. (2) The Bank may open branches and appoint agents in or out of Ghana in accor
dance with decisions of the Board in that behalf. 1. This Act was assented to on 22nd March, 1963. (Issue 1] VI -1052

ents in or out of Ghana in accor
dance with decisions of the Board in that behalf. 1. This Act was assented to on 22nd March, 1963. (Issue 1] VI -1052

ACT 163
National Investment Bank Act, 1963
Objects and Functions
3. Objects of the Bank
(1) The objects of the Bank shall be to carry on the business of assisting industrial,
commercial, agricultural and any other enterprises in general by,
(a) assisting in the establishment, expansion and modernisation of such
enterprises;
(b) encouraging and facilitating the participation of internal and external capi
tal in those enterprises;
(c) counselling and encouraging small Ghanaian business concerns; and
(d) seeking to bring together investment opportunities, internal and external
capital, and experienced management;
and subject to this Act, to do any other things that are incidental or conducive to the at
tainment of the objects of the Bank. (2) The Bank may operate in all sectors of the national economy including the public,
the co-operative and the private sectors.

e objects of the Bank. (2) The Bank may operate in all sectors of the national economy including the public,
the co-operative and the private sectors.

(3) For the purposes of its operations in the public sector, the Bank may receive on
special deposit,
(a) moneys allocated by Parliament for development purposes or any other
allocations, and
(b) the proceeds of an internal or external loan designated specifically for en
terprises in the public sector;
and the Bank shall disburse the same for the granting of loans on applications sponsored
by the Government to industrial or any other enterprises. (4) Interest on a special deposit received under subsection (3) shall be paid at a rate to
be agreed on in consultation with the Minister. (5) The loans granted by the Bank out of moneys received on a special deposit under
subsection (3) shall be granted at the Bank’s lending rate of interest and on the Bank’s
own responsibility.

oneys received on a special deposit under
subsection (3) shall be granted at the Bank’s lending rate of interest and on the Bank’s
own responsibility.

(6) Subject to article 181 of the Constitution, where the Bank is for a reasonable
cause unable to lake on itself sole responsibility for the repayment of a loan, the loan may
be facilitated by the Government taking on itself partial or total responsibility towards the
Bank for the loss which may be incurred by the Bank as a result of the granting of the
loan and the extent of the Government’s responsibility in that case shall be determined by
the Authority. (7) The Auditor-General may direct that a loan granted under subsection (5) on the
partial or total responsibility of the Government be shown separately in the Bank’s bal
ance sheet from any other loans for which the Bank has sole responsibility. (8) Where Government responsibility is only partial the portion for which the Bank
bears sole responsibility shall be included in the Bank’s liabilities and assets; and the
Auditor-General shall include an appropriate note to this effect in the body of the balance
sheet. VI -1053 [Issue 1]

liabilities and assets; and the
Auditor-General shall include an appropriate note to this effect in the body of the balance
sheet. VI -1053 [Issue 1]

ACT 163
National Investment Bank Act, 1963
(9) For the purposes of its operations in the co-operative and private sectors the Bank
may use,
(a) its general funds,
(b) funds borrowed generally on the Bank’s own account from both internal
and external sources, and
(c) the funds allocated by Government for employment in those sectors. (10) A business or an enterprise in which Government holds not more than forty per
cent of the ordinary share capital and does not exercise effective control of the manage
ment shall, for the purposes of sub-section (9), be deemed to be engaged in the private
sector of the national economy. (11) The Bank’s annual accounts shall be drawn up in a manner that shows its opera
tions under subsection (9) separately from its operations under subsection (3). 4.

annual accounts shall be drawn up in a manner that shows its opera
tions under subsection (9) separately from its operations under subsection (3). 4.

Functions of the Bank
(1) For the purposes of this Act, the Bank may
(a) provide finance in the form of long-term or medium-term loans with or
without security, or by purchasing or subscribing for shares or other securi
ties, or by acquiring any other interest;
(b) guarantee or become liable for the payment of money, or for the performance
of an obligation, and generally to transact all kinds of guarantee business;
(c) transact all kinds of trust and agency business;
(d) hold funds with any banks, correspondents or agents whether within or
outside Ghana and to furnish the Bank of Ghana with the periodical reports
that are necessary of the amount of funds held abroad under this paragraph;
(e) furnish managerial, technical and administrative advice and assist in ob
taining managerial, technical, and administrative services to industrial, ag
ricultural and commercial enterprises;
() invest and deal with the moneys of the Bank not immediately required in
the securities and in the manner determined by the Board;
(g) acquire by way of purchase, lease or otherwise any property and sell, ex
change, surrender, lease, mortgage, charge, convert, turn to account or other
wise dispose of that property;
(h) accept, before the date on which it is due, any payment in respect of a loan
granted by the Bank;
(i) issue bonds, which shall be deemed to be trustee securities, with a maturity
date of not less than three years;
(j) draw, issue, accept or endorse, discount and re-discount bills of exchange,
promissory notes for the purposes of the business of the Bank;
(k) underwrite new issues of stocks, bonds, debentures and other securities;
[Issue 1] VI -1054

ry notes for the purposes of the business of the Bank;
(k) underwrite new issues of stocks, bonds, debentures and other securities;
[Issue 1] VI -1054

ACT 163
National Investment Bank Act, 1963
(I) give a guarantee or an indemnity to, and enter into arrangements with, the
Government, a local authority or a body corporate or any other person, in
order to obtain rights, concessions and privileges that may seem to the
Board to be conducive to the attainment of any of the objects of the Bank;
(m) make appropriate provision for the welfare of employees or former em
ployees of the Bank and of their dependants;
(n) undertake research, studies, investigations and experiments in regard to the
economic and technical feasibility of industrial, agricultural, commercial
and other projects or enterprises;
(o) do all or any of the above acts as principals, agents, contractors, trustees or
otherwise and either by or through trustees, agents, sub-contractors or oth
erwise, and either alone or in partnership or in conjunction with any other
body and to contract for the carrying on of an operation connected with the
Bank’s business by any other body.

ership or in conjunction with any other
body and to contract for the carrying on of an operation connected with the
Bank’s business by any other body.

(2) The Bank is further authorised to perform the following functions:
(a) receive deposits from and keep cash accounts for companies, corporations
and other persons (legal or natural) who have taken or have agreed to take
development loans or facilities from the Bank;
(b) grant overdraft, with or without security, to the extent the Board considers
proper;
(c) draw, accept, discount, buy and sell bills of exchange and other negotiable
securities;
(d) make, issue and circulate bank drafts and letters of credit to order or other
wise than to the bearer on demand;
(e) draw bills of exchange and grant letters of credit payable outside Ghana;
(f) buy and sell telegraphic transfers whether payable in Ghana or elsewhere;
(g) buy bills of exchange payable outside Ghana at any usance not exceeding
six months;
(h) deal with any other matters and do any other things that are incidental or
subsidiary to the functions specified in this section/
Capital and Reserve
5.

al with any other matters and do any other things that are incidental or
subsidiary to the functions specified in this section/
Capital and Reserve
5.

Authorised capital
(1) The share capital of the Bank shall be eighty million cedis divided into shares of
no par value of which seventy-five percent shall be taken up by the Government and the
remaining twenty-five percent shall be issued to the public at the time, in the amounts and
in the manner determined by the Board.3
2. Substituted by section 1 of the National Investment Bank (Amendment) Decree, 1975 (N.R.C.D. 316). 3. Substituted by section 1 of the National Investment Board (Amendment) Law, 1985 (P.N.D.C.L. 106)
previously amended by N.L.C.D. 121 and S.M.C.D. 152. VI-1055 (Issue 1]

ction 1 of the National Investment Board (Amendment) Law, 1985 (P.N.D.C.L. 106)
previously amended by N.L.C.D. 121 and S.M.C.D. 152. VI-1055 (Issue 1]

ACT 163
National Investment Bank Act, 1963
(2) The Minister shall, on the establishment of the Bank pay up thirty-three one-third
percent of the nominal value of the shares taken up by the Government and the remaining
sixty-six two-thirds per cent shall remain uncalled for, for twelve calendar months from
the date of the commencement of operations by the Bank. (3) Subject to the provisions of the immediately preceding subsection, further calls
may be made by the Bank, at intervals of not less than twelve calendar months, in the
amounts and in the manner determined by the Board. (4) Shares issued to the public shall carry the right to dividend at a minimum rate of
three percent per annum. (5) The Board may from time to time, with the prior approval of the Minister, in
crease the share capital of the Bank and may divide the unissued capital, original or in
creased, into different classes, with or without any preference, priority or privileges, or
subject to any postponement of rights, or to any conditions or restrictions, and of the
nominal value determined by the Board. 6. Payment of dividends
(1) A dividend shall not be paid in respect of the Bank’s first year of operations.

the
nominal value determined by the Board. 6. Payment of dividends
(1) A dividend shall not be paid in respect of the Bank’s first year of operations.

(2) The Bank shall not declare nor pay dividends in excess of five percent per annum
on shares issued to the Government and to the public at a time when the amount of moneys
in the general reserve fund is less in amount than one-half of the share capital of the Bank.4
7. Limitation of liability of shareholders
The liability of a holder of shares in the Bank is limited to the amount, unpaid on the
shares held by that holder. 8. General reserve fund
(1) There shall be established by the Bank a general reserve fund.

ed to the amount, unpaid on the
shares held by that holder. 8. General reserve fund
(1) There shall be established by the Bank a general reserve fund.

(2) At the end of each financial year, after allowing from the expenses of operation,
and after provision has been made for bad and doubtful debts, depreciation in assets, con
tributions to staff and superannuation funds and any other contingencies, and for any
other purpose to which the profits of the Bank may properly be applied, there shall be
transferred to the general reserve fund,
(a) a part of the general profits that the Board considers appropriate, if the
amount of moneys in the general reserve fund is less than the authorised
share capital of the Bank, or
(b) one quarter of the net profits, if the amount of moneys in the general reserve
fund is not less than the amount of the authorised share capital of the Bank;
and the moneys thereafter remaining with the payment of dividends declared by the Bank
shall be paid into the Consolidated Fund.5
4. Amended by section 1 of the National Investment Bank. (Amendment) Law, 1985 (P.N.D.L.C. 106), previ
ously amended by N.L.C.D. 181 and S.M.C.D. 152. 5. Substituted by section 3 of the National Investment Bank (Amendment) Decree, 1978 (S.M.C.D. 152)
previously amended by N.R.C.D. 316. [Issue 1] VI - 1056

bstituted by section 3 of the National Investment Bank (Amendment) Decree, 1978 (S.M.C.D. 152)
previously amended by N.R.C.D. 316. [Issue 1] VI - 1056

ACT 163
National Investment Bank Act, 1963
9. Borrowing powers
(1) Subject to this section the Bank may
(a) borrow, raise or guarantee a sum of money from a source whether within or
without Ghana, on the terms and conditions that the Board thinks fit, and
(b) for the purpose of securing that sum of money and interest in it or as collat
eral security for a debt, liability or an obligation of the Bank or of any third
patty or for any other purpose, create, issue, make and give any bonds, per
petual or redeemable debentures, or debenture stock or a mortgage or
charge on the undertaking or the whole or a part of the property, rights and
assets, present or future of the Bank, including the uncalled capital of the
Bank.

the undertaking or the whole or a part of the property, rights and
assets, present or future of the Bank, including the uncalled capital of the
Bank.

(2) The total amount of moneys borrowed, raised or guaranteed and owing or out
standing under subsection (1) shall not at anytime exceed in the aggregate ten times the
total amount of the paid up share capital and reserve funds of the Bank; but the Minister
responsible for Finance and Economic Planning may, in consultation with the Bank of
Ghana, by Legislative Instrument, vary the ratio of the total amount of moneys boirowed,
raised or guaranteed and owing or outstanding to the paid up shares and reserve funds of
the Bank presciibed in this subsection.6
(3) For the purposes of this section,
(a) the moneys received by the Bank on special deposit under subsection (3) of
section 3 shall not be counted in the total amount borrowed by the Bank;
(b) the amount of moneys owing or outstanding in respect of a guarantee shall
be deemed to be the maximum amount of the principal sum contingently
payable under the guarantee and the amount of the moneys borrowed or
pioposed to be borrowed or of guarantees given or proposed to be given
which are repayable or payable in a currency other than the Ghana currency
shall be converted into Ghana currency at the official par value of the
Ghana currency established with the International Monetary Fund.

hana currency
shall be converted into Ghana currency at the official par value of the
Ghana currency established with the International Monetary Fund.

10. Guarantees and loans repayable by Government
(1) Subject to article 181 of the Constitution, the President may in writing, in the name
and on behalf of the Republic on the terms and conditions determined by the President,
(a) guarantee, or
(b) agree to repay
loans raised by the Bank from an international financial organisation or from a foreign
government institution, or a foreign private banking institution. (2) Where the President in the name and on behalf of the Republic agrees to repay a
loan under paragraph (b) of subsection (1) provision shall be made by the Bank for the
repayment of the loan to the President. 6. Substituted by section 1 of the National Investment Bank (Amendment) Law, 1985 (P.N.D.C.L. 106). VI -1057 [Issue 1]

t of the loan to the President. 6. Substituted by section 1 of the National Investment Bank (Amendment) Law, 1985 (P.N.D.C.L. 106). VI -1057 [Issue 1]

ACT 163
National Investment Bank Act, 1963
(3) Loans guaranteed, or agreed to be repaid, under subsections (1) and (2) may be
denominated in foreign currency. (4) The moneys payable by the Minister under a guarantee or agreement are hereby
charged on the Consolidated Fund. (5) The moneys payable to the President under subsection (2) of this section shall be
paid into the Consolidated Fund. (6) Subject to subsection (7), the moneys payable by the Bank whether to the Gov
ernment or the lender in respect of principal, interest and any other charges on a loan to
the Bank from an international financial organisation or a foreign government institution
or from a foreign private source, or by the President under a guarantee or agreement to
repay given under subsection (1) shall, despite the provisions of any other enactment, be
paid,
(a) without deduction for, and free from the taxes, duties or fees imposed by or
under an enactment for the time being in force;
(b) free from the restrictions imposed by or under an enactment for the time
being in force.

sed by or
under an enactment for the time being in force;
(b) free from the restrictions imposed by or under an enactment for the time
being in force.

(7) Subsection (6) shall not apply to the taxes, duties, fees or restrictions on payments
under a bond or promissory note to the Government, or the international organisation or
the foreign government institution or the foreign private source when the bond or promis
sory note is beneficially owned by a person resident in Ghana. (8) For the purposes of subsection (7) the question whether a person is or is not resi
dent in Ghana shall be determined in accordance with the relevant provisions of the In
ternal Revenue Act, 2000 (Act 592).7
Administration
The Board
11. Board of Directors
(1) The governing body of the Bank is a board of directors. (2) The Board consists of
(a) the Managing Director as the chairman,
(b) the Deputy Managing Director appointed under section 16,
(c) the official head of the Ministry responsible for Finance or the representa
tive being a public officer not below the rank of Director,
(d) the official head of the Ministry responsible for Industries or the represen
tative being a public officer not below the rank of Director,
(e) four directors appointed by the President of whom at least two are repre
sentatives of the shareholders of the Bank. 7.

elow the rank of Director,
(e) four directors appointed by the President of whom at least two are repre
sentatives of the shareholders of the Bank. 7.

Substituted by section 3 of the National Investment Bank (Amendment) Degree, 1975 (N.R.C.D. 316). [Issue 1] VI -1058

Substituted by section 3 of the National Investment Bank (Amendment) Degree, 1975 (N.R.C.D. 316). [Issue 1] VI -1058

ACT 163
National Investment Bank Act, 1963
(3) The directors to be appointed under paragraph (e) of subsection (2) of this section
must be persons of experience in financial affairs, not being persons employed by the
Government. (4) The appointment of directors required by paragraph (e) of subsection (2) to be
representatives of the shareholders of the Bank shall be made in consultation with, and
from among the shareholders, other than the Government, who hold shares of a nominal
value of not less than $100,000.00 in the capital of the Bank. (5) Repealed^
(6) A majority of the directors of the Bank must be persons who are citizens of
Ghana.9
12. Qualifications for appointment
(1) A person is not qualified to be appointed a director of the Bank if that person,
(a) is a Member of Parliament;
(b) repealed',1(1
(c) having been declared an insolvent or a bankrupt under a law in force in the
Republic or in any other country, is an undischarged insolvent or bankrupt.

aving been declared an insolvent or a bankrupt under a law in force in the
Republic or in any other country, is an undischarged insolvent or bankrupt.

(2) A director of the Bank shall cease to hold office if the director
(a) becomes a person of unsound mind or incapable of carrying out the duties
of office;
(b) is declared an insolvent or a bankrupt under a law in force in the Republic
or in any other country;
(c) suspends payment or compounds with the creditors of the director;
(d) is convicted of a felony or an offence involving fraud or dishonesty;
(e) is guilty of serious misconduct in relation to the functions of office;
() in the case of a person possessed of professional qualifications, is disquali
fied or suspended, otherwise than at the personal request of the director,
from practising that profession in Ghana or in any other country by the or
der of a competent authority made in respect of the director personally. 13. Term of office
(1) On the first day of March each year the director appointed under paragraph (e) of
subsection (2) of section 11 who has held office for the longest period since the director’s
last appointment shall retire. (2) As between directors appointed on the same day the director to retire shall, unless
they otherwise agree, be decided by lot. 8.

ment shall retire. (2) As between directors appointed on the same day the director to retire shall, unless
they otherwise agree, be decided by lot. 8.

By section 4 of the National Investment Bank (Amendment) Decree, 1975 (S.M.C.D. 152). 9. Substituted by section 4 of the National Investment Bank (Amendment) Decree, 1975 (N.R.C.D. 316). 10. By section 5 of the National Investment Bank (Amendment) Decree, 1975 (N.R.C.D. 236), previously
amended by N.L.C.D. 236. VI -1059 [Issue 1]

316). 10. By section 5 of the National Investment Bank (Amendment) Decree, 1975 (N.R.C.D. 236), previously
amended by N.L.C.D. 236. VI -1059 [Issue 1]

ACT 163
National Investment Bank Act, 1963
(3) A director appointed under paragraph (e) of subsection (2) of section 11 may, by
writing personally signed by the director and addressed to the Minister responsible for
Finance resign from office.”
(4) Where the office of a director becomes vacant otherwise than by effluxion of time
or in the opinion of the Minister a director is incapacitated by absence from Ghana, ill
ness or any other sufficient cause from performing the functions of office, the Minister
may appoint another person to hold that office. (5) A person appointed to act in the place of a director under subsection (4) shall
cease to hold office on the date when the person in whose place the office is held would
have ceased to hold office in accordance with this Act, or when the Minister is satisfied
that the incapacity of that person in whose place the office is held has terminated, which
ever is the earlier event. (6) The directors are eligible for re-appointment. 14.

that person in whose place the office is held has terminated, which
ever is the earlier event. (6) The directors are eligible for re-appointment. 14.

Functions of the Board
(1) The Board shall ensure that every application shall be dealt with and considered
strictly on its financial and economic merits irrespective of all other considerations, and
in general shall ensure that,
(a) the Bank performs all its functions and conducts all its affairs in accordance
with sound business, financial and investment standards and practice;
(b) the Bank shall not seek, in an enterprise financed by it a controlling interest
or any other interest that would give it primary responsibility for the man
agement of the enterprise, but the Bank shall reserve to itself the right to
ensure that the enterprises financed by it are properly and efficiently
operated;
(c) the Bank shall take the necessary measures to ensure that a financial assis
tance rendered by it to a business or an enterprise is utilised for the purpose
for which the financial assistance is given;
(d) the Bank shall employ the funds at its disposal with due regard to the diver
sification of their employment. (2) The rates at which the Bank shall charge interest, fees, commissions and any
other charges shall be determined and reviewed from time to time by the Board.

ates at which the Bank shall charge interest, fees, commissions and any
other charges shall be determined and reviewed from time to time by the Board.

(3) In determining the rate of interest to be charged by the Bank on its loans the
Board shall take into account, in addition to any other consideration, the rate of interest
paid by the Bank on borrowed funds and the need to maintain the Bank at all times in a
sound financial condition. (4) The Bank shall not make an investment in or otherwise have financial transaction
with an enterprise in which a director of the Bank is a partner, director or shareholder, or
is in any other way directly or indirectly interested, unless the director,
(a) has, prior to the voting, disclosed that interest,
11. Substituted by section 6 of the National Investment Bank (Amendment) Decree, 1975 (N.R.C.D. 316)
previously amended by N.R.C.D. 181 and N.R.C.D. 236. (Issue 1] VI - 1060

ion 6 of the National Investment Bank (Amendment) Decree, 1975 (N.R.C.D. 316)
previously amended by N.R.C.D. 181 and N.R.C.D. 236. (Issue 1] VI - 1060

ACT 163
National Investment Bank Act, 1963
(b) has refrained from participating in the discussion of the matter in issue and
if so required by the chairman has withdrawn from the meeting of the
Board during that discussion, and
the transaction is unanimously approved by the other directors of the Bank present at the
Board meeting. 15. Meetings of the Board
(1) The chairman of the Board shall summon meetings of the Board for the despatch
of the Bank’s business as often as may be required but not less frequently than once in
every month. (2) The quorum at a meeting of the Board is four and, unless otherwise provided, de
cisions shall be adopted by a simple majority of the votes of the members present. (3) The chairman is entitled to vote at the meeting and in the case of an equality of
votes shall have a casting vote.12
Managing Director and Deputy Managing Director
16.

ntitled to vote at the meeting and in the case of an equality of
votes shall have a casting vote.12
Managing Director and Deputy Managing Director
16.

The Managing Director and Deputy Managing Director
(1) There shall be a Managing Director who is a person of recognised financial ex
perience appointed by the President for a period not exceeding five years on the terms
that the President may determine, and is eligible for re-appointment for further periods
not exceeding five years on each subsequent re-appointment. (2) There shall be a Deputy Managing Director who shall be appointed by the Presi
dent from the management staff of the Bank on the recommendation of the Board and on
the terms determined by the Board. (3) Subject to this Act and to the general control of the Board on matters of policy,
the Managing Director is charged with the direction of the business of the Bank, and of
its administration and organisation and with the employment, control and dismissal of the
employees of the Bank.

n of the business of the Bank, and of
its administration and organisation and with the employment, control and dismissal of the
employees of the Bank.

(4) The Deputy Managing Director shall, subject to this Act,
(a) be charged with the performance of the functions of the Managing Director
when the Managing Director is absent from Ghana or is otherwise inca
pacitated from performing those functions; and
(b) otherwise assist the Managing Director in the performance of those functions
and perform any other functions as the Managing Director may delegate.13
12, Substituted by section 4 of the National Investment Bank (Amendment) Decree, 1968 (N.LC.D. 236) pie-
viously amended by N.LC.D. 121. 13. Substituted by section 7 of the National Investment Bank (Amendment) Decree, 1975 (N.R.C.D. 316). VI-1061 [Issue 1]

iously amended by N.LC.D. 121. 13. Substituted by section 7 of the National Investment Bank (Amendment) Decree, 1975 (N.R.C.D. 316). VI-1061 [Issue 1]

ACT 163
National Investment Bank Act, 1963
Accounts and Audit
17. Accounts and audit
(1) The Board shall keep proper accounts and other records in relation to them and
the books of account of the Bank shall be balanced on the thirty-first day of December of
each year, and shall be audited by the Auditor-General in accordance with article 187 of
the Constitution. (2) The annual statement of accounts as audited shall be signed by the chairman, two
directors and the secretary of the Bank, and shall be sent to the Minister not later than the
first day of March each year. (3) The annual statement of accounts shall, as soon as may be practicable, be laid by
the Minister before Parliament and shall be published in the Gazette. (4) The annual statement of accounts shall give a true and fair view of the profit or
loss of the Bank for the period to which it relates. (5) For the purposes of this section, the period from the commencement of this Act to
the thirty-first day of December, 1963 shall be deemed to be a financial year.

rposes of this section, the period from the commencement of this Act to
the thirty-first day of December, 1963 shall be deemed to be a financial year.

(6) The Bank shall,
(a) exhibit throughout the year in a conspicuous position in every office or
branch of the Bank in the Republic a copy of its last audited balance sheet;
(b) on or about the date of the presentation of the balance sheet to the share
holders in general meeting cause a copy to be published in a daily newspa
per circulating in Ghana;
(c) not later than seven days prior to the date of the general meeting send a
copy to each shareholder entitled to attend the meeting. 18. Appointment of auditor
Omitted.14
19. Functions of auditor
Omitted.'5
14. Omitted by virtue of article 187 of the Constitution. The section reads,
“(1 ) An auditor shall be elected and his remuneration fixed at the annual general meeting of shareholders of
the Bank. (2) Subject as aforesaid the Board shall, prior to the first annual general meeting appoint an auditor and
fix his remuneration. (3) An auditor elected or appointed under this Act may be a shareholder, but no director or employee of
the Bank shall be eligible to be elected or appointed as auditor during his continuance in office. (4) If any casual vacancy occurs in the office of auditor the vacancy shall be filled by the Board.

inted as auditor during his continuance in office. (4) If any casual vacancy occurs in the office of auditor the vacancy shall be filled by the Board.

(5) An auditor shall be eligible for re-election. (6) Without prejudice to the foregoing provisions of this section the Minister may at any time, in his abso
lute discretion request the Auditor-General or such auditors as the Minister may appoint, to examine
and report on the accounts of the Bank; and the Auditor-General or such auditors shall do so accord
ingly, and the Bank shall provide all necessary and proper facilities therefor.”
15 Omitted by virtue of article 187 of the Constitution. footnote continued on next page
[Issue 1] VI -1062

necessary and proper facilities therefor.”
15 Omitted by virtue of article 187 of the Constitution. footnote continued on next page
[Issue 1] VI -1062

ACT 163
National Investment Bank Act, 1963
Miscellaneous
20. Relations with the Government
The Bank may act generally as an agent for the Government or for a Government cor
poration where it can do so appropriately and consistently with this Act and with its func
tions as an investment bank and an agency for economic development. 21. Relations with other Banks
(1) The Bank may keep accounts with a bank in Ghana or in any other country and
may receive from that bank overdrafts, loans or any other financial accommodation. (2) The Bank may, subject to this Act, seek the co-operation of, and co-operate with,
any other banks in Ghana whenever necessary. (3) The Bank may appoint one or more other banks within Ghana or in any other
country, or any branches of the same to act as the Bank’s agent for the furtherance of the
Bank’s business. (4) Repealed}1'
22. Liquidation of Bank
The Bank shall not be placed in liquidation except pursuant to an Act passed in that
behalf and then only in the manner directed by the Act. 23. Service of documents
A document may be served on the Bank by leaving it at or sending it by registered
post to the head office of the Bank.

e Act. 23. Service of documents
A document may be served on the Bank by leaving it at or sending it by registered
post to the head office of the Bank.

The section reads,
“(1) in the discharge of his lunctions under this Act, the auditor of (he Bank shall have access at all reason
able times to the books, accounts and other documents of the Bank and may at the expense of the Bank
if appointed by the Bank and at the expense of the Government if appointed by the Minister, employ
accountants or other persons to assist him in investigating the accounts and may, in relation to such
accounts, examine any director or any employee of the Bank. (2) The auditor shall make a report to the shareholders or to the Minister, as the case may be, upon the
annual statement of accounts and in every such report he shall state whether, in his opinion, the bal
ance-sheet is a full and fair balance-sheet containing the necessary particulars and properly drawn up
so as to exhibit a true and fair view of the state of the Bank’s affairs, regard being had to the provi
sions of subsections (6) and (10) of section 3 of this Act, and, where he has called for any explanation
or information from the Board, whether it has been given and whether it is satisfactory.

n 3 of this Act, and, where he has called for any explanation
or information from the Board, whether it has been given and whether it is satisfactory.

(3) Any such report made to the shareholders shall be read together with the report of the Board at the
annual general meeting. (4) The auditor appointed by the Board or elected at an annual general meeting shall be supplied by the
Bank with all notices and other communications relating to any general meeting which any share
holder of the Bank is entitled to receive and shall be entitled to attend any such meeting and to be
heard thereat on any part of the business of the meeting which concerns him as auditor but shall not be
entitled to vote on any such matter before (he meeting.”
16. Repealed by section 9 of the National Investment Bank (Amendment) Decree, 1975 (N.R.C.D. 316). The
section reads
“The Bank shall not be a bank within (he meaning of the Bank of Ghana Ordinance, 1957 (No. 34
of 1957).”
VI -1063 [Issue 1]

D. 316). The
section reads
“The Bank shall not be a bank within (he meaning of the Bank of Ghana Ordinance, 1957 (No. 34
of 1957).”
VI -1063 [Issue 1]

ACT 163
National Investment Bank Act, 1963
24. Commencement of business
The Bank shall commence business under this Act on the day that the Minister may,
by Legislative Instrument with the prior approval of the President, appoint. 25. Preliminary acts and expenses
An act done and the preliminary expenses sanctioned by the Minister in connection
with the formation of the Bank shall have the same effect and validity as if those acts had
been validly done and the expenses validly incurred by the Board; and the Board may
continue the act or thing commenced under that sanction but remaining unfinished at the
date of the coming into operation of this Act as if the act or thing had been initiated and
carried through by the Board. 26. Internal Revenue Act, 2000
Repealed)1
27. Companies Act, 1963
The Companies Act, 1963 (Act 179) shall not apply to the Bank. 28.

ugh by the Board. 26. Internal Revenue Act, 2000
Repealed)1
27. Companies Act, 1963
The Companies Act, 1963 (Act 179) shall not apply to the Bank. 28.

Regulations
The Minister may, after consultation with the Board, by Legislative Instrument, make
Regulations for the better carrying into effect of the provisions of this Act, and in particu
lar for the matters that, were the Bank a company registered under the Companies
Act, 1963 (Act 179) would be dealt with in the Regulations of the Company. 29. By-Laws
The Board may, with the prior approval of the Minister, make by-laws consistent with
this Act regulating its functions under this Act including,
(a) the operating policy, rules and procedures, and the conduct of the general
business of the Bank;
(b) the books and accounts to be kept at the head office and branches of the
Bank;
(c) the remuneration of the directors;
(d) the conduct and defence of legal proceedings, and the manner of signing
pleadings; and
(c) the constitution and management of a provident fund for the employees of
the Bank. 30. interpretation
In this Act unless the context otherwise requires,
“Auditor-General” includes an auditor appointed by the Auditor-General;
“Bank” means the National Investment Bank established by section 1;
17. By section 7 of the National Investment Bank (Amendment) Decree, 1975 (N.R.C.D.

Bank” means the National Investment Bank established by section 1;
17. By section 7 of the National Investment Bank (Amendment) Decree, 1975 (N.R.C.D.

31). [Issue 1] VI - 1064

ACT 163
National Investment Bank Act, 1963
“ Board” means the governing body, that is, the Board of Directors established
under section 11;
"financial year” means the period of twelve months ending on the thirty-first day
of December of each year;
“ functions” includes powers and duties;
“Managing Director” means the Managing Director of the Bank appointed under
section 16, or the person appointed under subsection (2) of that section;
“Minister” means the Minister responsible for Finance;
“ property” means movable or immovable property;
“ public sector” includes State owned enterprises and joint State and foreign pri
vate enterprises.
VI -1065 [Issue 1]