The High Court, presided over by Justice Nana Brew, on July 10, 2024, dismissed an application for judicial review filed by George Smith-Graham, a former director of UMB Bank, against the Bank of Ghana (BoG).

In July 2022, the BoG issued a directive under the Banks and Specialised Deposit-Taking Institutions Act, Act 930, and the Corporate Governance Directive 2018, requiring all commercial banks to obtain prior written “No Objection” from BoG before redesignating an existing non-executive director to any other position.

On July 5, 2023, UMB appointed Mr. Smith-Graham as its board chair without obtaining the necessary “No Objection” from BoG.

The BoG informed UMB of its breach and directed the bank to apply for the required approval. UMB, advised by its lawyers, refused to comply, leading BoG to revoke its approval of Mr. Smith-Graham’s appointment as a director.

Mr. Smith-Graham filed for judicial review, arguing that BoG lacked the authority under section 102 of Act 930 to revoke his appointment without a hearing. However, the BoG maintained its stance, asserting its authority under the said section.

The Court ruled in favour of BoG, stating that Act 930 grants BoG broad supervisory powers to ensure compliance with banking regulations.

The Court found that BoG’s actions were justified, and the applicant had been given a fair hearing through the exchange of correspondence.

The Court concluded that Act 930 takes precedence over the Companies Act, 2019 (Act 992) regarding the removal of directors by BoG.

Consequently, the Court dismissed the application, deeming it unmeritorious.