(1)  A  person  shall  not  be  appointed  or  elected  or,  accept  an appointment or election, as a director or key management personnel of a bank, specialised deposit-taking institution or financial holding company if

that person

(a) has been adjudged to be of unsound mind or is detained as a person with a mental disorder under any relevant enactment;

(b) has been declared insolvent or has entered into agreement with another person for payment of the debt of that person and has suspended payment of the debt;

(c) has been convicted of an offence involving fraud, dishonesty or moral turpitude;

(d) has been a director, key management personnel or associated with the management of an institution which is being or has been  wound  up  by  a  court  of  competent  jurisdiction  on account of bankruptcy or an offence committed under an enactment;

(e)  is a director or key management personnel of another bank, specialised  deposit-taking  institution or financial holding company in the country;

(f) is below the age of eighteen years;

(g) does not have the prior written approval of the Bank of Ghana; or

(h) has defaulted in the repayment of the financial exposure of that person.

(2) A bank, specialised deposit-taking institution or financial holding company which has knowledge or is aware of a circumstance that subjects a director or key management personnel to disqualification under subsection (1) shall promptly notify the Bank of Ghana.

(3) Where a person becomes disqualified under subsection (1), that person shall  immediately cease to hold office as a director or key management personnel and the bank, specialised deposit-taking institution or financial holding company shall immediately terminate the appointment of that person.

(4) A person who contravenes subsection (1) is liable to pay to the Bank of Ghana an administrative penalty of one thousand penalty units.

(5) Subsection (1) (e) does not apply where

(a) a person appointed as a director of the ARB Apex Bank Limited is a director of a rural or community bank;

(b) a person appointed as a director of a rural or community bank is a director of another bank; or

(c) in the opinion of the Bank of Ghana, special circumstances require that the person is appointed as a director of another specialised  deposit-taking institution or financial holding company.