CHAPTER IX

Banks are managed by the Board of Directors

and the set of officers of the bank. The Board

of Directors is the policy formulating body and

the set of officers are the policy implementing

body.

Stockholders elect the Board of Directors by

virtue of their right to vote. The Board of

Directors elect from among themselves the

Chairman of the Board, the President, Vice

president, the Secretary, Treasurer,

Comptroller and Senior and Junior officers of

the bank.
 DUTIES AND RESPONSIBILITIES OF THE
STOCKHOLDERS

Amending Approving the minutes

the by-laws. of the previous annual

or special meeting of
stockholders.

Amending the Increasing &

Approving the tentative
Articles of decreasing the
budget for the ensuring year
Incorporation. Authorized Capital presented by the president.
Stock in the bank.
BOARD OF DIRECTORS

The Board of Directors is responsible to

the stockholders for the management
of the bank. Because of the scope of
responsibilities and details of
management involved, they usually
delegate some of their reponsibilities
to commities.
Duties of the Board of Directors in the Bank
II
Elects the President
and Chief Executive
officer of the bank.
IV VI
Elects an Executive Secretary who has the
Approves the
responsibility of maintaining all corporate records
compensation to be
of the bank, the corporate seal, and for recording
all actions taken by the Board of Directors and paid to the various
Executive Committee; Takes down the minutes of
the meeting for the both the Board of Directors officers and
and the Stockholders meeting. employees of the
bank.

I lll
Elects one of their members as
Chairman of the Board and
delegates to him the
responsibility of presiding at the
meeting of the Board of
Directors, the annual meetings
of stockholders, and acting as
the liason officer between the
stockholders and the Board of
Directors.
V
Appoints upon the
Elects the heads of the recommendation of the
Chairman and the President,
various committees
Senior and Junior officers, to
appointed by them whom delegated the
responsibility of supervising
certain operating and financial
functions of the bank.
Since the Board of Directors has full responsibility
and complete authority to decide on matters
pertaining to the bank, it usually delegates certain
functional authority and responsibility to the officers
and committees.
The committees created are the Executive Committee
sometimes called as the Administrative Committee,
Loans and Discount Committee, Investment
Committee, Trust Committee, and Examination
Committee.
EXECUTIVE
COMMITTEE
The Executive Committee deals
with Administrative matters.

1. Hiring of executive officers and

determining their remunerations.

2. Removal of such officers as may be

deemed necessary by the committee
3. Discussing and reviewing any general

matter pertaining to administration of the

affairs of the bank.

4. Identifying the problems in their area of
responsibility and find solution to the
problems.
 This committee is in charge of all matters
pertaining to loans and discounts, to credit
lines and all other loan related functions of
the bank.

It determines from time to time the rate of interest

to be paid on Time Deposits and Saving Deposits in
line with the general policy set forth by the Board
of Directors.

It approves or disapproves loans and authorizes renewals of

loan in excess of the loaning limitations of the officers.

It determines from time to time the rate of interest for various

types of loans in line with the general policy set forth by the
Board of Directors.
EXAMINATION COMMITTEE
This committee is in charge of
identifying all problems in connection
with the audit and examination of the
bank, finding solutions and making
recommendations to the Board of
Directors.
Presides on all meetings of the Board of Directors,
Executive Committee and the Stockholders;
Sees to it that the stockholders are informed at all
times on affairs of the bank which concerns their
interst;
Maintains together with the President liaison between
the stockholders and the Board of Directors;
Maintains together with the President liaison between
the Board of Directors and the various committees
 PRESIDENT

The president is the Chief Executive Officer of

the bank. He is held responsible by the Board of
Directors for the active management of the
bank. In small banks, the Chairman of the
Board and the President are one and the same,
but in big banks two different individuals hold
the position of the Chairman of the Board and
the President.
Arowwai Industries
DUTIES OF THE PRESIDENT
Presides at all meetings of the Board
of Directors and the various
committees if the Chairman of the
Board is absent;
Sees to it that all actions taken by the
committees and decisions made by the
officers and administrative personnel are
in conformity with the established bank
policy;
Supervises the business and financial affairs of
the bank
Jointly signs with the cashier all checks or all
financial documents in behalf of the bank;
To seat as a member of the board if he is not at the same time the
Chairman of the Board during meeting, since he is in the best
position to advise the board.
Carries out all reponsibilities assigned or delagated from time to
time by the Board of Directors
Implements the policies formulated by the Board of Directors
 VICE PRESIDENT
The Board of Directors assigns several vice presidents
in accordance with the needs of the bank.The
executive vice president, who is sometimes called 1st
Vice President or Senior Vice President, assists the
President and acts in behalf of the president when
latter is absent

The Administrative Vice The other Vice Presidents head

the various department of the
President is coordinating
bank and report to the President
officer of the bank and the
through administrative vice
liaison between the president president, any problem aring from
and all other officers. the department.

09
 ASSISTANT VICE PRESIDENT

These are officers designated to

assist the Vice President in their
functions. They are at times
delegated responsibilities, by the
Board of Directors in connection
with the various divisions, sections,
or offices of the bank.

03
EXECUTIVE SECRETARY

Maintaining a complete and current list of

Maintains all corporate records.
stockholders and their addresses;

The custodian if the corporate seal which Preparing the agenda for the meeting for both
represents the legal authority of the bank. the Board of Directors and Stockholders.

Notifying the Board of Directors on the

Taking minutes of the meetings in both Board
Stockholders of the date and venue of the
of Directors and Stockholders meetings.
meeting.

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CASHIER

The cashier is the chief

financial officer of the bank
and is elected according to the
law by the Board of Directors
of the bank.
 COMPTROLLER

1. Supervises the general 2. Approves all the 3. Direct the preparation

accounting of the bank and of the budget on income
purchases of the
prepares reports for the and expenses and other
office supplies,
supervisory agencies, statistical information
management and others, furniture and required by the Board of
which are conducting the equipment for the Directors, the President,
affairs of the bank. bank. or the Administrative Vice
President.
 AUDITOR

The Auditor undertakes a

periodic examination of the
bank in accordance with the
established standards as
approved by the Board of
Directors.
VARIOUS DEPARTMENT OF THE BANK
01 Cash Department
02 Credit Department
03 Foreign/ International Department
04 Trust Department
05 Investment Department
Money Market Department
06
Branches Department
07
Human Resource & Development
08
Department
09 Legal Department
10 General Services Department
11 Administrative Department
12 Accounting Departmen
THANK YOU