25 Oct 2016

ROLE OF A STATUTORY MANAGER

ROLE OF A STATUTORY MANAGER

On the 20th of October 2016 , Bank of Uganda suspended the Board of Directors of Crane Bank Uganda limited and took over management of the bank. On the same day Bank of Uganda appointed a statutory manager of the bank.

But what exactly does the statutory manager do; Section 90 (4) of the Financial Institutions Act 2004 provides among the many roles of a statutory Manager the role to;

• Trace and preserve all the property and assets of the institution he or she is appointed to administer.

• Recover debts and other sums of money due and owing to the financial institution he or she is appointed to administer.

• Evaluate the capital structure and management of the institution and recommend to the Central Bank any restructuring or re-organisization which he or she considers necessary .

• Enter into contracts in the ordinary course of business of the financial institution.

• Obtain from any officers or employees of the financial institution any documents, records , accounts, statements or information relating to its business.

• Issue new balance sheets, profit and loss accounts of the financial institution.

Do you think the appointed Statutory Manager will enable Crane Bank Limited regain economic and financial stability?

2 thoughts on “ROLE OF A STATUTORY MANAGER

  1. my thought is as far as the re-capitalization process is not met apptopriately in-terms of finding a new investor to buy acertain percentage of stock/shares whether in cash or stock then its my thought is its going zo take a while until the bank regains its stability and trust.
    2. The current shareholders also need to play a bigger part in looking for a formidabe investor and relinquish a part of shareholding for the bank to get back on its feet.my thoughts.

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