Regulatory Alerts2012-01-30
Circular Letter LC-COB-04 on the Powers of Board Presidents and General Managers of Credit Institutions
The Central African Banking Commission (COBAC) issued Circular Letter LC-COB/04 to resolve jurisdictional conflicts between Board Presidents and General Managers arising from overlapping day-to-day management powers in credit institutions. The circular clarifies that the Board of Directors and its President must strictly adhere to their oversight and strategic roles under Articles 416–487 of the OHADA Uniform Act, while General Managers retain broad operational authority unless explicitly appointed as Managing Directors and approved under the 1992 Central African banking convention. COBAC will enforce these distinct prerogatives through targeted verification missions and disciplinary sanctions to prevent executive overreach and ensure strict compliance with existing banking and commercial regulations.