Singapore legislation
Section 47
Section 47
Disqualification or removal of director or executive officer
(1)
Despite any other written law, a finance company must not, without the prior written consent of the Authority, permit a person to act as its director or executive officer, if the person —
has been convicted, whether in Singapore or elsewhere, of an offence committed before, on or after 18 April 2013, being an offence —
involving fraud or dishonesty;
the conviction for which involved a finding that he or she had acted fraudulently or dishonestly; or
that is specified in the Third Schedule to the Registration of Criminals Act 1949;
is an undischarged bankrupt, whether in Singapore or elsewhere;
has had execution against him or her in respect of a judgment debt returned unsatisfied in whole or in part;
has, whether in Singapore or elsewhere, entered into a compromise or scheme of arrangement with his or her creditors, being a compromise or scheme of arrangement that is still in operation;
has had a prohibition order under section 68 of the Financial Advisers Act 2001, section 74 of the Insurance Act 1966 or section 101A or 123ZZC of the Securities and Futures Act 2001 made against him or her that remains in force; or
has been a director of, or directly concerned in the management of, a regulated financial institution, whether in Singapore or elsewhere —
which is being or has been wound up by a court; or
the approval, authorisation, designation, recognition, registration or licence of which has been withdrawn, cancelled or revoked by the Authority or, in the case of a regulated financial institution in a foreign country or territory, by the regulatory authority in that foreign country or territory.
(2)
Despite any other written law, where the Authority is satisfied that a director or an executive officer of a finance company —
has wilfully contravened or wilfully caused the finance company to contravene any provision of this Act;
has, without reasonable excuse, failed to secure the compliance of the finance company with this Act, the Monetary Authority of Singapore Act 1970 or any of the written laws set out in the Schedule to that Act; or
has failed to discharge any of the duties of his or her office,the Authority may, if it thinks it necessary in the public interest or for the protection of the depositors or creditors of the finance company, by written notice to the finance company, direct the finance company to remove the director or executive officer (as the case may be) from his or her office or employment within such period as may be specified by the Authority in the notice, and the finance company must comply with the notice.
(3)
Without affecting any other matter that the Authority may consider relevant, the Authority must, when determining whether a director or an executive officer of a finance company has failed to discharge the duties of his or her office for the purposes of subsection (2)(c), have regard to any criteria prescribed.
(4)
Before directing a finance company to remove a person from his or her office or employment under subsection (2), the Authority must —
give the finance company and the person written notice of its intention to do so; and
in the notice referred to in paragraph (a), call upon the finance company and the person to show cause, within the time specified in the notice, why the person should not be removed.
(5)
If the finance company and the person mentioned in subsection (4) —
fail to show cause within the time specified under subsection (4)(b) or within any extended period of time that the Authority allows; or
fail to show sufficient cause,the Authority may direct the finance company to remove the person under subsection (2).
(6)
Any finance company which, or any director or executive officer of a finance company who, is aggrieved by a direction of the Authority under subsection (2) may, within 30 days after receiving the direction, appeal in writing to the Minister, whose decision is final.
(7)
Any finance company which contravenes subsection (1) or fails to comply with a notice issued under subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part of a day during which the offence continues after conviction.
(8)
No criminal or civil liability is incurred by a finance company, or any person acting on behalf of the finance company, in respect of anything done (including any statement made) or omitted to be done with reasonable care and in good faith in the discharge or purported discharge of the obligations of the finance company under this section.
(9)
In this section, unless the context otherwise requires —
Definition
“regulated financial institution” means a person who carries on a business, the conduct of which is regulated or authorised by the Authority or, if it is carried on in Singapore, would be regulated or authorised by the Authority;
Definition
“regulatory authority”, in relation to a foreign country or territory, means an authority of the foreign country or territory exercising any function that corresponds to a regulatory function of the Authority under this Act, the Monetary Authority of Singapore Act 1970 or any of the written laws set out in the Schedule to that Act.