Singapore legislation
Section 21C
Section 21C
Action by Authority if licensed trust company unable to meet obligations, etc.
(1)
The Authority may exercise any one or more of the powers specified in subsection (2) as appears to it to be necessary, where —
a licensed trust company informs the Authority that it is or is likely to become insolvent, or that it is or is likely to become unable to meet its obligations, or that it has suspended or is about to suspend payments;
a licensed trust company becomes unable to meet its obligations, or is insolvent, or suspends payments;
the Authority is of the opinion that a licensed trust company —
is carrying on its business in a manner likely to be detrimental to the interests of the public or a section of the public or of the protected parties of the licensed trust company;
is or is likely to become insolvent, or is or is likely to become unable to meet its obligations, or is about to suspend payments;
has contravened any of the provisions of this Act; or
has failed to comply with any condition or restriction attached to its trust business licence; or
the Authority considers it in the public interest to do so.
(2)
Subject to subsections (1) and (3), the Authority may —
require the licensed trust company immediately to take any action or to do or not to do any act or thing whatsoever in relation to its business as the Authority may consider necessary;
appoint one or more persons as statutory adviser, on such terms and conditions as the Authority may specify, to advise the licensed trust company on the proper management of such of the business of the licensed trust company as the Authority may determine; or
assume control of and manage such of the business of the licensed trust company as the Authority may determine, or appoint one or more persons as statutory manager to do so on such terms and conditions as the Authority may specify.
(3)
In the case of a licensed trust company incorporated outside Singapore, any appointment of a statutory adviser or statutory manager or any assumption of control by the Authority of any business of the licensed trust company under subsection (2) must only be in relation to —
the business or affairs of the licensed trust company carried on in, or managed in or from, Singapore; or
the property of the licensed trust company located in Singapore, or reflected in the books of the licensed trust company in Singapore (as the case may be) in relation to its operations in Singapore.
(4)
Where the Authority appoints 2 or more persons as the statutory manager of a licensed trust company, the Authority must specify, in the terms and conditions of the appointment, which of the duties, functions and powers of the statutory manager —
may be discharged or exercised by such persons jointly and severally;
must be discharged or exercised by such persons jointly; and
must be discharged or exercised by a specified person or such persons.
(5)
Where the Authority has exercised any power under subsection (2), it may, at any time and without affecting its power under section 10(2)(e), do one or more of the following:
vary or revoke any requirement of, any appointment made by or any action taken by the Authority in the exercise of such power, on such terms and conditions as it may specify;
further exercise any of the powers under subsection (2);
add to, vary or revoke any term or condition specified by the Authority under this section.
(6)
No liability shall be incurred by a statutory manager or a statutory adviser for anything done (including any statement made) or omitted to be done with reasonable care and in good faith in the course of or in connection with —
the exercise or purported exercise of any power under this Act;
the performance or purported performance of any function or duty under this Act; or
the compliance or purported compliance with this Act.
(7)
Any licensed trust company that fails to comply with a requirement imposed by the Authority under subsection (2)(a) 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.