Regulatory Alerts2012-01-30
Circular LC-COB-04 on the Powers of Board Presidents and General Managers of Credit Institutions
The Central African Banking Commission issued Circular LC-COB-04 to resolve jurisdictional conflicts between Board Presidents and General Managers in CEMAC credit institutions by clarifying their respective statutory powers under the OHADA Uniform Act. The circular mandates that Board Presidents seeking to intervene in day-to-day management or assume overall leadership must secure formal appointment as Managing Director and obtain regulatory approval under the 1992 banking harmonization convention. To enforce these boundaries, the Commission will conduct targeted verification missions and initiate disciplinary proceedings against executives who exceed their delegated authority or fail to comply with internal control and related-party transaction regulations.