BY-LAWS GOVERNIG THE MANAGEMENT OF BANKS AND THE PROCEDURE FOR THE CANCELLATION OF BANK PERMITS AS MENTIONED IN ARTICLE 39 OF THE MONETARY AND BANKING ACT

Posted on Posted in Business Guidelines

As required by Article 40 of the Monetary and Banking Act approved on 18th Tir, 1351 the By-laws governing the management of banks and the procedure for the cancellation of permits issued for their establishment in the cases stipulated in Article 39 of the Monetary and Banking Act are, hereby, approved as follows:

ARICLE 1
Should the management of a bank be assigned to Bank Markazi Iran in accordance with Article 39 of the Monetary and Banking Act, Bank Markazi Iran may directly manage the bank or, upon the recommendation of the Board mentioned in Article 39, entrust same to other natural or legal person or persons. The natural or legal persons thus entrusted with the management of the bank shall be responsible and shall follow the guide-lines determined by Bank Markazi Iran.

ARTICLE 2
Bank Markazi Iran or the person or persons to whom the management of a bank is assigned shall have all the authority vested in the Board of Directors and the Managing Director by the bank’s statutes, the said Board of Directors and Managing Director being divested of all authority in the management of the bank as of the date of assignment. The Board of Directors and the Managing Director shall however, co-operate with the management of the bank in case they are requested to do so.

ARTICLE 3
Should the powers vested in the directors by the statutes of the bank be deemed insufficient by Bank Mariazi Iran for the proper management of the bank, necessary powers shall be granted with the approval of the Currency and Credit Council and concurrence of the Board mentioned in Article 39 of the Monetary and Banking Act. Furthermore, should a need for additional capital be recognized for the proper management of the bank, the capital increase and the issuance and sale of new shares may be authorized with the approval of the Currency and Credit Council and concurrence of the Board mentioned in Article 39.

ARTICLE 4
Bank Markazi Iran shall determine the remuneration and benefits for the person or persons entrusted with the management of the bank.

ARTICLE 5
Should any other arrangement be made concerning the management of a bank in accordance with Article 39 of the Monetary and Banking Act, such arrangement shall be enforced subject to the provisions of the present By-laws.

ARTICLE 6
Should no time limit be determined for the (vicarious) management of a bank, the management of the bank shall be transferred to the authority appointed by the General Meeting upon the recommendation of the Governor of Bank Markazi Iran, the approval of the Currency and Credit Council and the Concurrence of the Board mentioned in Article 39.

ARTICLE 7
Should a bank’s permit be cancelled prior to that bank’s going into operation, Bank Markazi Iran shall so inform the said bank and the Companies Registration Office and shall announce the fact in one of the mass circulation newspapers of Tehran. As of the date the bank receives such notice from Bank Markazi Iran, it shall not use the word “bank” in its correspondence, signs, etc.

ARTICLE 8
Should the cancellation of permit come after the bank has begun operation, the bank shall follow the directives of Bank Markazi Iran from the date of cancellation until liquidation is complete and winding up announced.
NOTE
The liquidation board shall be appointed upon the recommendation of the Governor of Bank Markazi Iran and with the approval of the Currency and Credit Council.

ARTICLE 9
Should in instances where, in keeping with the banking and economic interests of the country, credits in excess of amounts normally and customarily granted by Bank Markazi Iran are necessary for the management of the banks subject of these By-laws, Bank Markazi Iran may, with the concurrence of the Currency and Credit Council and approval of the Board mentioned in Article 39 of the Monetary and Banking Act, place the necessary amounts at the disposal of the management of the bank under conditions stipulated by the aforesaid Board.
These By-laws, comprising nine Articles and one Note, based on Article 40 of the Monetary and Banking Act, after being approved by the Finance Committee of the Majlis on Wednesday, 27th Dey, 1351, were approved by the Finance Committee of the Senate on Sunday, 1st Bahman, 1351.

FAR law firm

One thought on “BY-LAWS GOVERNIG THE MANAGEMENT OF BANKS AND THE PROCEDURE FOR THE CANCELLATION OF BANK PERMITS AS MENTIONED IN ARTICLE 39 OF THE MONETARY AND BANKING ACT

Leave a Reply

Your email address will not be published. Required fields are marked *