BoG did not err in disapproving UMB director’s appointment-Court

The High Court presided over by Justice Nana Brew has rejected an application for judicial review filed by George Smith-Graham, a former director of UMB Bank, against the Bank of Ghana (BoG).

The case stemmed from a 2022, directive issued by the BoG directing all commercial banks, including Universal Merchant Bank Ltd (UMB), to secure written "No Objection" from its outfit before reassigning an existing non-executive director to a different role.

Despite the above, the UMB appointed Smith-Graham, a non-executive director, as its board chair. 

The BoG notified UMB of this violation and instructed the bank to apply for the necessary "No Objection." UMB refused, citing legal advice that such approval was not needed. 

As a result, the BoG revoked its approval of Smith-Graham's appointment, using its authority under Act 930.

Smith-Graham subsequently sought a judicial review of this revocation, arguing that section 102 of Act 930 did not authorize BoG to revoke his directorship and, even if it did, he deserved a hearing. 

The BoG countered, asserting its power to revoke the appointment under the same section.

The Court ruled in favor of the BoG, emphasizing that Act 930 was intended to strengthen BoG in its function to maintain stability in the banking sector and that Section 102 grants BoG extensive powers to address breaches of its laws and regulations, including removing directors.

The Court thus dismissed the applicant's claim noting that the correspondence between the parties amounted to a hearing and that the applicant could not claim ignorance of this communication.

The application was therefore deemed unmeritorious, with the Court finding that the applicant failed to demonstrate that BoG had exercised its power in a corrupt, irrational, capricious, or unreasonable manner.