The Bank Board of the Czech National Bank

From Act No. 6/1993 Coll. of 17 December 1992, on the Czech National Bank,

as amended by

Act No. 60/1993 Coll.,
Act No. 15/1998 Coll.,
Act No. 442/2000 Coll.,
the Constitutional Court ruling promulgated under No. 278/2001 Coll.,
Act No. 482/2001 Coll.,
Act No. 127/2002 Coll.,
Act No. 257/2004 Coll.,
Act No. 377/2005 Coll.,
Act No. 57/2006 Coll.,
Act No. 62/2006 Coll.,
Act No. 230/2006 Coll.,
Act No. 160/2007 Coll.,
Act No. 36/2008 Coll.,
Act No. 124/2008 and
Act No. 254/2008 Coll.

Note: This text is a working material for information only, and is not an official translation of the Czech legislation

Article 5

(1) The supreme governing body of the Czech National Bank shall be the Bank Board of the
Czech National Bank (hereinafter referred to as the “Bank Board”). The Bank Board shall set
monetary policy and the instruments for implementing this policy, and shall decide upon the
fundamental monetary policy measures of the Czech National Bank and measures in the area of
financial market supervision.

(2) Furthermore, the Bank Board shall, in particular:

a) set forth the principles for the activities and transactions of the Czech National Bank;

b) approve the budget of the Czech National Bank;

c) set forth the organisational structure and fields of competence of the organisational units of the Czech National Bank;

d) define the types, amounts and uses of the funds of the Czech National Bank;

e) execute the rights and duties arising from labour-law relations in respect of the staff of the Czech National Bank. The Bank Board may delegate these activities to other members of staff;

f) grant its consent to the entrepreneurial activities of the staff of the CNB;

g) fix the salary and other emoluments of the Governor; the salaries and other emoluments of Vice-Governors and other members of the Bank Board shall be fixed by the Governor;

h) decide on appeals against the decisions of the Czech National Bank in the first instance.

Article 6

(1) The Bank Board shall consist of seven members, comprising the Governor of the Czech National Bank, two Vice-Governors of the Czech National Bank and four other members of the Bank Board of the Czech National Bank.

(2) The Governor, Vice-Governors and other members shall be appointed and relieved from office by the President of the Republic.

(3) cancelled

(4) No person shall be allowed to hold the position of member of the Bank Board more than twice.

(5) The members of the Bank Board shall be appointed for a term of six years.

(6) Membership of the Bank Board shall be incompatible with the position of member of a legislative body, member of the Government and membership of the governing, supervisory or inspection bodies of other banks or commercial undertakings, and the performance of any independent gainful occupation, except for scientific, literary, journalistic, artistic and pedagogical activities and except for management of own assets. Membership of the Bank Board shall be incompatible with any activity which might cause any conflict of interest between the performance of this activity and membership of the Bank Board.

(7) Any citizen of the Czech Republic who:

a) is fully competent to perform legal acts,

b) has completed a university education,

c) is of integrity,

d) is a person of recognised standing and professional experience in monetary matters and in the area of the financial market, may be appointed a member of the Bank Board.

(8) For the purposes of this Act, “of integrity” shall refer to a natural person who has not been lawfully convicted of a criminal offence.

(9) The members of the Bank Board shall be staff of the Czech National Bank.

(10) The performance of duties of a Bank Board member shall terminate:

a) with the expiration of his term of office,

b) on the day immediately following the day on which written notice of relief from office or of written notice of resignation from office is delivered, or at some later date given in the notice of relief or resignation from office.

(11) The President of the Republic shall relieve a member of the Bank Board from office:

a) in the event of a breach of paragraph 6 or of paragraph 7(c),

b) on the day any judgement depriving the member of competence to perform legal acts or limiting his competence to perform legal acts enters into legal force.

(12) The President of the Republic may relieve a member of the Bank Board from office if the member fails to perform his duties for a period exceeding six months.

(13) The Governor shall be relieved from office by the President of the Republic if he no longer fulfils the conditions required for the performance of his duties or if he has been guilty of serious misconduct. The President of the Republic may also relieve the Governor from office if he fails to perform his duties for a period exceeding six months. A decision to this effect may be referred to the European Court of Justice by the Governor concerned or the Governing Council of the European Central Bank on grounds of infringement of the Treaty establishing the European Community or of any rule of law relating to its application.

Article 7

(1) The Governor, or, in his absence, a Vice-Governor nominated by him, shall chair the meetings of the Bank Board. The Bank Board shall act by a simple majority of the votes cast. The Bank Board shall have a quorum if the Governor, or his nominee, and at least three other  members of the Bank Board are present. In the event of a tie, the chairperson shall have the casting vote.

(2) The Bank Board shall approve the Rules of Procedure of the Bank Board.

Article 8

The Governor shall represent the Czech National Bank externally. In his absence, a Vice-Governor nominated by him shall act on his behalf.