Central Bank Act 1942

Prohibition of the Governor holding shares in a F117 [ financial institution ].

20

20. (1) Every person appointed to be Governor shall within three months after his appointment absolutely sell or otherwise dispose of all shares in any F117 [ financial institution ] which he shall, at the time of his appointment, own or be interested in for his own benefit.

(2) If and whenever any shares in a F117 [ financial institution ] shall come to or vest in the Governor by will or succession for his own benefit, he shall, within three months after the same shall have so come to or vested in him, absolutely sell or otherwise dispose of the same or his interest therein.

(3) The Governor shall not purchase, take or become interested in for his own benefit any shares in any F117 [ financial institution ].

(4) If the Governor shall retain, purchase, take, or become or remain interested in any shares in any F117 [ financial institution ] in contravention of this section he shall forthwith become and be disqualified from holding the office of Governor.

F118 [ (4A) This section does not prohibit the Governor from

( a ) entering into a policy of insurance, or

( b ) purchasing units of, or participating in, a collective investment scheme whose funds are invested in bonds or equities generally (including the bonds or shares of a financial institution), or

( c ) establishing and maintaining an ordinary savings account with a building society or a friendly society.

(5) In this section

bank includes a bank incorporated outside the State as well as a bank incorporated in the State;

financial institution includes a credit institution and an insurance undertaking;

shares , in relation to a bank, include stock, shares, debentures, debenture stock, bonds and other securities of the bank. ]

Annotations:

Amendments:

F117

Substituted (1.08.2004) by Central Bank and Financial Services Authority of Ireland Act 2004 (21/2004), s. 5(a), S.I. No. 455 of 2004, subject to transitional provisions in s. 35 and sch. 5.

F118

Inserted and substituted (1.08.2004) by Central Bank and Financial Services Authority of Ireland Act 2004 (21/2004), s. 5(b) and (c), S.I. No. 455 of 2004, subject to transitional provisions in s. 35 and sch. 5.

Editorial Notes:

E50

Previous affecting provision: construction of “Bank” extended (9.04.1997) by Central Bank Act 1997 (8/1997), s. 27(1); substituted as per F-note above.