s.18Additional powers of Authority
18
Section 18Part 0 —

Additional powers of Authority

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Where the Authority is of the opinion that —
a licensee is or appears likely to become unable to meet the licensee’s obligations as they fall due;
a licensee is carrying on business in a manner detrimental to the public interest or the interest of the licensee’s clients or creditors;
a licensee has contravened this Act or the Beneficial Ownership Transparency Act, 2023 [Act 13 of 2023];
a licensee has failed to comply with a condition of the licensee’s licence;
the direction and management of a licensee’s business is not being conducted in a fit and proper manner;
a person holding a position as a director, manager or officer of a licensee’s business is not a fit and proper person to hold the respective position; or
a person holding or acquiring control or ownership of a licensee is not a fit and proper person to have such control or ownership,
the Authority may —
revoke the licence;
require the licensee immediately to take steps to rectify the matter;
suspend the licence of the licensee pending a full examination of the licensee’s affairs under section 16(1)(b);
impose conditions with respect to decisions made by the licensee including the suspension of voting rights or nullification of votes cast;
impose an administrative fine in accordance with section 42A of the Monetary Authority Act (2020 Revision);
impose conditions or further conditions, upon the licence and may amend or revoke any such condition;
require the substitution or removal of any director, manager or officer of the licensee;
at the expense of the licensee, appoint a person to advise the licensee on the proper conduct of that licensee’s affairs and to report to the Authority thereon within three months of the date of that person’s appointment;
at the expense of the licensee, appoint a person who shall be known as the Authority’s appointed controller, to assume control of the licensee’s affairs who shall, subject to necessary modifications, have all the powers of a person appointed as a receiver or manager of a business appointed under section 18 of the Bankruptcy Act (1997 Revision); and
require such action to be taken by the licensee as the Authority considers necessary.
Notwithstanding section 21(1), a licensee may, within seven days of a decision to revoke a licence under paragraph (i) of subsection (1), apply to the Authority for a reconsideration of its decision.
A person appointed under paragraph (iv) or (v) of subsection (1), or whose appointment has been extended under paragraph (b) of subsection (4) shall, from time to time at that person’s discretion and in any case within three months of the date of that person’s appointment or of the extension of that person’s appointment, prepare and furnish to the Authority a report of the affairs of the licensee and of that person’s recommendations thereon.
On receipt of a report under subsection (3), the Authority may —
revoke the appointment of the person appointed under paragraph (iv) or (v) of subsection (1);
extend the period of that person’s appointment;
subject to such conditions as the Authority may impose, allow the licensee to reorganise that licensee’s affairs in a manner approved by the Authority; or
revoke the licence and apply to the Court for an order that the licensee, if the licensee is a company, be forthwith wound up by that Court, in which case the provisions of the Companies Act (2025 Revision) relating to the winding up of a company shall apply.
Notwithstanding any other provision in this Act, the Authority may revoke a licence if the licensee has ceased to carry on the business of company management.
Whenever the Authority revokes a licence under paragraph (i) of subsection (1), paragraph (d) of subsection (4) or subsection (5), notice of such revocation shall forthwith be gazetted.
Repealed by section 3(b) of the Companies Management (Amendment) Act, 2020 [Law 26 of 2020].

Cross References

Referenced By