Section 4A: Re-capitalization

1[4A. Re-capitalization.⸺ln the event that in the audited annual financial statements of the Bank, the sum of paid-up capital and general reserves falls below zero, then⸺ (a) the Board, with the advice of the external auditors of the Bank, shall examine and prepare a-report on the causes and extent of the shortfall within a period not exceeding thirty calendar days; (b) in the event that the Board approves the report under clause (a), the Bank shall request the Federal Government for a capital contribution to remedy the deficit with a view to restoring the capital to the level of prescribed paid-up capital under section 4; and (c) upon receipt of the request under clause (b), the Federal Government shall, within a period not exceeding thirty calendar days, transfer to the Bank the necessary amount in cash or in negotiable debt instruments with a specified maturity issued at prevailing market-related interest rates.

Effective date: 1956-04-18

Related sections