Bank of Uganda Act

BANK OF UGANDA ACT. ARRANGEMENT OF SECTIONS. Section PART I INTERPRETATION. 1. Interpretation. PART II ESTABLISHMENT OF THE BANK AND THE BOARD OF DIRECTORS. Establishment of the bank. 2. Establishment of the bank. 3. The seal of the bank 4. Functions of the bank. 5. Powers of the bank. 6. Head office. The board of directors. 7. The board of directors. 8. Qualifications of directors. 9. Disqualifications of directors 10. Duties and powers of the board. 11. Meetings of the board. 12. Remuneration of members. 13. Conditions of service of members. PART III CAPITAL, RESERVE AND CURRENCY. 14. Authorised capital. 15. General Reserve Fund. 16. Distribution of profits and loss. 17. Unit of currency. 18. External value of the shilling. 19. Auctioning of foreign currency. 20. Right to issue notes and coins. 21. Design of bank notes. 22. Denominations and form of bank notes and coins. 23. Legal tender. 24. Refund of lost or imperfect bank notes and coins. 25. Evidence of imitation of bank notes. 26. Exemption from stamp duty. PART IV OFFICERS AND STAFF. 27. The governor and deputy governor. 28. Appointment of employees. PART V BANKING. 29. Credit and other operations. 30.

. PART IV OFFICERS AND STAFF. 27. The governor and deputy governor. 28. Appointment of employees. PART V BANKING. 29. Credit and other operations. 30.

Publication of rediscount rates. 31. External reserves. PART VI BANK RELATIONSHIP WITH THE GOVERNMENT. 32. Relationship with the Government. 33. Temporary advances. 34. Report on advances. 35. Development financing. PART VII BANK RELATIONSHIP WITH FINANCIAL INSTITUTIONS. 36. Clearinghouse. 37. Cooperation with financial institutions. 38. Minimum cash reserve balances. 39. Control of credit and interest rates, etc. 40. Financial institutions to furnish information. 41. Financial institutions as agents of the bank. PART VIII ACCOUNTS AND FINANCIAL STATEMENTS. 42. Bank's financial year. 43. Audit. 44. Returns. PART IX MISCELLANEOUS PROVISIONS. 45. Declaration of secrecy. 46. Exemption from tax. 47. Prohibited names. 48. Minister's powers of direction. 49. Annual report. 50. Byelaws. 51. Offences and penalties. 52. Regulations. Schedule Meetings of the board. CHAPTER 51 BANK OF UGANDA ACT. Commencement : 14 May, 1993.

50. Byelaws. 51. Offences and penalties. 52. Regulations. Schedule Meetings of the board. CHAPTER 51 BANK OF UGANDA ACT. Commencement : 14 May, 1993.

An Act to amend and consolidate the Bank of Uganda Act for regulating the issuing of legal tender, maintaining external reserves and for promoting the stability of the currency and a sound financial structure conducive to a balanced and sustained rate of growth of the economy and for other purposes related to the above. PART I INTERPRETATION. 1. Interpretation. In this Act, unless the context otherwise requires— ( a ) "bank" means the Bank of Uganda established under section 2; ( b ) "board" means the board of directors established under section 7; ( c ) "executive director" means a person appointed under section 28; ( d ) "financial institution" includes a bank, credit institution, building society and any institution classified as a financial institution by the bank; ( e ) "fund" means the General Reserve Fund of the Bank established under section 15; ( f ) "governor" means the Governor of the Bank of Uganda appointed under section 27; ( g ) "Minister" means the Minister responsible for finance. PART II ESTABLISHMENT OF THE BANK AND THE BOARD OF DIRECTORS. Establishment of the bank. 2. Establishment of the bank.

nister responsible for finance. PART II ESTABLISHMENT OF THE BANK AND THE BOARD OF DIRECTORS. Establishment of the bank. 2. Establishment of the bank.

(1) The Bank of Uganda established under the Bank of Uganda Act, 1966, shall continue as the Central Bank of Uganda. (2) The bank shall be a body corporate with perpetual succession and a common seal and may sue or be sued in its corporate name. (3) The bank may, subject to the limitations contained in this Act relating to the business which the bank may carry on, purchase, hold, manage and dispose of real and movable property, and may enter into contracts that may be expedient. 3. The seal of the bank. (1) The seal of the bank shall be authenticated by the signatures of the governor and the secretary to the board. (2) In the absence of the governor, the deputy governor may sign in his or her place, and the person performing the functions of the secretary may sign in the absence of the secretary. (3) A document issued by the bank and sealed with the seal of the bank and authenticated in the manner provided under this section shall be received and taken to be a true document without further proof unless the contrary is shown. 4. Functions of the bank.

ded under this section shall be received and taken to be a true document without further proof unless the contrary is shown. 4. Functions of the bank.

(1) The functions of the bank shall be to formulate and implement monetary policy directed to economic objectives of achieving and maintaining economic stability. (2) Without prejudice to the generality of subsection (1), the bank shall— ( a ) maintain monetary stability; ( b ) maintain an external assets reserve; ( c ) issue currency notes and coins; ( d ) be the banker to the Government; ( e ) act as financial adviser to the Government; ( f ) advise the Government on monetary policy as is provided under section 32(3); ( g ) where appropriate, act as agent in financial matters for the Government; ( h ) be the banker to financial institutions; ( i ) be the clearinghouse for cheques and other financial instruments for financial institutions; ( j ) supervise, regulate, control and discipline all financial institutions and pension funds institutions; ( k ) where appropriate, participate in the economic growth and development programmes. 5. Powers of the bank. Subject to this Act, the bank shall have all the powers pertaining to a legal person and may do all things necessary for better carrying out its functions. 6. Head office.

the bank shall have all the powers pertaining to a legal person and may do all things necessary for better carrying out its functions. 6. Head office.

The bank shall have its head office in Kampala and may establish branches and appoint agents and correspondents in and out of Uganda as the board may decide. The board of directors. 7. The board of directors. (1) The governing body of the bank shall be a board of directors consisting of— ( a ) the governor, who shall be the chairperson; ( b ) the deputy governor who shall be the deputy chairperson; ( c ) the Secretary to the Treasury; and ( d ) not less than four nor more than six other directors. (2) The directors referred to under subsection (1)( d ) shall be appointed by the Minister. (3) A member of the board may hold office for a period of four years, and different members shall be appointed at different times so that the expiry date of the members shall fall at different times. (4) A member of the board appointed under subsection (2) shall be eligible for reappointment. (5) A director may resign his or her office by writing under his or her hand addressed to the Minister and the resignation shall take effect one month from the date of receipt of the letter of resignation by the Minister.

hand addressed to the Minister and the resignation shall take effect one month from the date of receipt of the letter of resignation by the Minister.

(6) If a member of the board dies or resigns or otherwise vacates office before the expiry of the term for which he or she was appointed, the Minister may appoint another person in his or her office, and the person so appointed shall hold office for the unexpired period of the term of office of the person in whose place he or she is appointed. (7) Whenever for any sufficient reason the offices of the governor and the deputy governor are vacant at the same time, the Minister shall, in consultation with the board, designate one of the executive directors to perform the duties of the deputy governor and attend meetings of the board until the appointment of the governor or deputy governor, but the executive director shall not for those purposes be or be deemed to be a member of the board.

e appointment of the governor or deputy governor, but the executive director shall not for those purposes be or be deemed to be a member of the board.

(8) Whenever for any sufficient reason the governor and deputy governor are absent at the same time, the governor shall designate a senior officer to perform the executive functions of the deputy governor and attend meetings of the board until the resumption of office by the governor or the deputy governor, and the board shall appoint from among themselves a chairperson for the period of absence of the governor and deputy governor. 8. Qualifications of directors. A person may be appointed a director— ( a ) if he or she is a citizen of Uganda; and ( b ) if he or she has recognised qualification in economic, financial, business or banking experience. 9. Disqualifications of directors. (1) No person shall be appointed or be a member of the board who is or becomes a director or salaried officer of the bank other than the governor and the deputy governor. (2) A member of the board shall cease to hold office if— ( a ) he or she becomes of unsound mind or is incapable of carrying out the duties of his or her office; ( b ) he or she become This section of the article is only available for our subscribers.

s incapable of carrying out the duties of his or her office; ( b ) he or she become This section of the article is only available for our subscribers.

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