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National Bank of Vanuatu (Amendment) Act 1998

Commencement: 31 July 1998

REPUBLIC OF VANUATU

NATIONAL BANK OF VANUATU (AMENDMENT) ACT
NO. 16 OF 1998

Arrangement of Sections

1. Amendment of section 1
2. Amendment of section 3
3. Amendment of section 4
4. Repeal of section 5
5. Repeal of section 13
6. Amendment of section 15
7. Amendment of section 16
8. Amendment of section 19
9. Amendment of section 21
10. Amendment of section 30
11. Commencement

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REPUBLIC OF VANUATU

Assent: 16/07/98
Commencement: 31/07/98

NATIONAL BANK OF VANUATU (AMENDMENT) ACT
NO. 16 OF 1998

An Act to amend the National Bank of Vanuatu Act No. 46 of 1989 ("the principal Act").

BE IT ENACTED by the President and Parliament as Follows:-

AMENDMENT OF SECTION 1

1. Section 1 of the principal Act is amended by omitting the definition of "General Manager," and substituting (in alphabetical order) the following definition:
   

""Managing Director" means the Managing Director of the Bank appointed in accordance with section 21;".

AMENDMENT OF SECTION 3

2. Section 3 of the principal Act as amended by the National Bank of Vanuatu (Amendment) Act No 12 of 1992 is amended by repealing subsection (3) and substituting the following subsection:
   

"(3) Subject to the provisions of this Act, the Bank, its members, Managing Director, officers and servants -

(a) shall not be subject to the direction or control of any other person or body in the exercise of their functions; and

(b) shall act in accordance with any general policy directions in the national interest given in writing to it from time to time by the Minister after consultation with the Board."

AMENDMENT OF SECTION 4

3. Section 4 of the principal Act is amended by:

(a) repealing subsection (3) and substituting the following subsection:

"(3) The Board will consist of the following members appointed by the Prime Minister:

(a) a representative of the Ministry of Finance and Economic Management nominated by the Minister; and

(b) a representative of the Attorney-General nominated by the Attorney General (which may be the Attorney General himself); and

(c) the general manager (however designated) of the Vanuatu Commodities Marketing Board; and

(d) the chairman (however designated) of the Chamber of Commerce; and

(e) a representative of the Vanuatu Financial Centre Association Limited (provided that person is not employed or involved in the domestic banking industry in Vanuatu) as nominated by that organisation; and

(f) the Managing Director of the bank."

(b) by inserting after subsection (3) the following subsection:

"3A. The members appointed under subsection (3) shall hold office:

(a) in the case of members appointed under paragraphs (a) and (b) for 3 years, and may be reappointed once for a further 3 years, and

(b) in the case of members appointed under paragraphs (c), (d) and (t) for the term of the member's employment in that office; and

(c) in the case of the member appointed under paragraph (e), for a term of 2 years and may be reappointed once for a further 3 years."

(c) repealing subsection and substituting the following subsection:

"(4) The members of the Board referred to in subsection (3) must have at least 5 years experience in business or in activities undertaken by members of the Vanuatu Finance Centre Association or must have a university degree or similar qualification in commerce, accounting or law.";

(d) adding after subsection (1) the following subsection:

"(8) Members of the Board must perform their functions in an impartial and professional manner.".

REPEAL OF SECTION 5

4. Section 5 of the principal Act is repealed and the following section substituted:
   

"CHAIRMAN AND DEPUTY CHAIRMAN

5. (1) The Chairman of the Board must b appointed from the members of the Board referred to in section 4(3)(b)-(e) by the Prime Minister after consultation with the Minister on such terms and conditions as may be determined by the Prime Minister (but subject to any enactment providing for the amount and manner by which any such remuneration will be determined).
   

(2) The Chairman may only be removed from that office by the Prime Minister on the unanimous recommendation of a panel comprising the chairman of the Public Service Commission and the Chairman of the Vanuatu Financial Centre Association Limited, for incompetence, disability, bankruptcy, neglect of duty or misconduct.

(3) The members of the Board shall, from amongst their number, elect a Deputy Chairman of the Board."

REPEAL OF SECTION 13

5. Section 13 of the principal Act as amended by the National Bank of Vanuatu (Amendment) Act No 12 of 1992 is repeated and the following section substituted:
   

"REMUNERATION AND ALLOWANCES OF BOARD MEMBERS

13. Members of the Board will serve without remuneration but will be entitled to a sitting allowance of VT5000 per day, (or part day as the case may be) and to reimbursement of travelling and other expenses in respect of attendance at Board meetings.".
    

AMENDMENT OF SECTION 15

6. Section 15 is amended by adding after subsection (3) the following subsection:
   

"(4) Where any business at a Board meeting concerns a member in his personal or business capacity (being other than a matter concerning him as a member of the Board) then the member must absent himself from that part of the meeting that deals with that business and will not be entitled to vote in respect of that business."

AMENDMENT OF SECTION 16

7. Section 16 is amended by:

(a) deleting from subsection (1) the words "Subject to subsection (3)"; and

(b) repealing subsection (3).

AMENDMENT OF SECTION 19

8. Section 19 of the principal Act is amended by adding the following subsection:
   

"(2) (a) Every member must upon appointment to the Board fully disclose all financial and other personal interests including all other board memberships and directorships and the Board must maintain a register of Board members' interests in which those particulars must be recorded.

(b) Without limiting the Generality of paragraph (a), each member must fully disclose upon his or her appointment to the Board and then annually thereafter in respect of himself or herself and his or her immediate family interests in:

(i) land and other property (except the family home and personal effects);

(ii) Vehicles (except one family vehicle);

(iii) shares in public or private companies;

(iv) income;

(v) liabilities (except liabilities relating to the family home and personal effects);

(vi) directorships in corporation;

(vii) directorships or other office held in unincorporated bodies;

(viii) gifts received of a value greater than VT20,000;

(ix) any assets acquired or disposed of during the past twelve months;

(x) any liabilities acquired or discharged during the last twelve months.

(xi) assets held outside Vanuatu;

(xii) a trust."

AMENDMENT OF SECTION 21

9. Section 21 of the principal Act is amended by:

(a) repealing subsection (1) and substituting the following subsection:

"(1) The Prime Minister after consultation with the Minister and on the recommendation of the Board will appoint a Managing Director who must be a person with not less than 5 years experience in banking business or financial matters and hold a relevant university degree or similar qualification."

(b) omitting in subsection (2) the words "letter of appointment" and substituting the words "contract of employment";

(c) repealing subsection (7) and adding the following subsections:

"(7) Notwithstanding anything in this or any other Act the Managing Director will be entitled to 3 months salary in lieu of notice of termination and any contractual obligation to the contrary shall have no effect.

(8) The Managing Director must not delegate his or her function to attend Board meeting unless the Managing Director will, for reasons beyond his or her control, be unable to attend."

AMENDMENT OF SECTION 30

10. Section 30 of the principal Act is amended by inserting after subsection (5) the following subsections:
    

"(5A) Subject to subsection (5B), and notwithstanding any provision in this Act to the contrary, no loan or financial facility whatsoever shall be made available or -ranted to a member either directly or indirectly by the Bank.

(5B) Where a member receives a loan or financial facility contrary to subsection (5A) that member will be deemed to have resigned and the vacancy thereby created must be filled in accordance with section 4(3).

(5C) Where a person who is appointed to the Board has a loan or financial facility with the Bank then that member must discharge that loan or terminate the facility within 12 months of the date of that persons appointment or resign from office.".

COMMENCEMENT

11. This Act commences on the date of its publication in the Gazette.

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