Section 22: Appointment of directors

(1) Every bank shall before appointing a director or manager seek and obtain the Board's written consent for the proposed appointment.
(2) No person shall be appointed or shall remain a director, secretary or an officer of a bank who-
(a) is of unsound mind or, as a result of ill health, is incapable of carrying out his duties; or
(b) is declared bankrupt or suspends payments or compounds with his creditors, including his bankers; or
(c) is convicted of any offence involving dishonesty or fraud; or
(d) is guilty of serious misconduct in relation to his duties; or
(e)
in the case of a person possessed of professional qualification, is disqualified or suspended (otherwise than of his own request) from practising his profession in Nigeria by the order of any competent authority made in respect of him personally.
(3) No person who has been a director of or directly concerned in the management of a bank which has been wound up by the Federal High Court shall, without the express authority of the Governor, act or continue to act as a director of or be directly concerned in the management of any other bank.
(4) A person whose appointment with a bank has been terminated or who has been dismissed for reasons of fraud, dishonesty or conviction for an offence involving dishonesty or fraud shall not be employed by any bank in Nigeria.
(5)
A bank which knowingly acts in contravention of subsections (1), (2), (3) or (4) of this section commits an offence and is liable on conviction to a fine of N50,000.
(6) It shall not be a defence for any director, secretary or officer of a bank, to claim that he is not aware of the provisions of subsection (4) of this section, except he can prove that he had obtained prior clearance of such a person from the secretary of the Banker's Committee who maintains a register of terminated, dismissed or convicted staff of banks on the ground of fraud or dishonesty.