Singapore legislation

Clause 17

Objection to existing control of designated financial holding company with bank subsidiary

(1)

The Minister may serve a written notice of objection on any person referred to in section 13 or 14, other than an excepted person as defined in those sections, if —

(a)

the Minister is satisfied that —

(i)

any condition of approval imposed on the person under section 15(2) has not been complied with;

(ii)

it is no longer in the national interest to allow the person to continue to be a party to the agreement or arrangement described in section 13(3), or to continue to be a substantial shareholder, a 12% controller, a 20% controller or an indirect controller, as the case may be;

(iii)

the person has furnished any false or misleading information or document in connection with the person’s application for approval under section 13 or 14; or

(iv)

he would not have granted his approval under section 15 had he been aware, at that time, of circumstances relevant to the person’s application for such approval; or

(b)

the Authority is satisfied that —

(i)

the person has ceased to be a fit and proper person;

(ii)

having regard to the likely influence of the person, the designated financial holding company is no longer likely to carry on its activities prudently or to comply with the provisions of this Act; or

(iii)

it would not have been satisfied as to any of the matters specified in section 15(1)(a) had it been aware, at that time, of circumstances relevant to the person’s application under section 13 or 14.

(2)

The Minister may serve a written notice of objection on any excepted person referred to in section 13 or 14 if —

(a)

the Minister is satisfied that it is not in the national interest to allow the excepted person to continue, as the case may be —

(i)

to be a party to the agreement or arrangement described in section 13(4); or

(ii)

to be a substantial shareholder, a 12% controller, a 20% controller or an indirect controller; or

(b)

the Authority is satisfied that —

(i)

the excepted person is not a fit and proper person; or

(ii)

having regard to the likely influence of the excepted person, the designated financial holding company is not likely to carry on its activities prudently or to comply with the provisions of this Act.

(3)

Before the service of a written notice of objection, the Minister shall, unless he decides that it is not practicable or desirable to do so, cause to be given to the person concerned notice in writing of his intention to serve the written notice of objection, specifying a date by which the person may make written representations with regard to the proposed written notice of objection.

(4)

Upon receipt of any written representations, the Minister shall consider them for the purposes of determining whether to issue a written notice of objection.

(5)

The Minister shall, in any written notice of objection, specify a reasonable period within which the person to be served the written notice of objection shall —

(a)

take such steps as are necessary to ensure that he ceases to be a party to the agreement or arrangement described in section 13(3) or (4), or ceases to be a substantial shareholder, a 12% controller, a 20% controller or an indirect controller, as the case may be; or

(b)

comply with such direction or directions as the Minister may make under section 18.

(6)

Any person served with a written notice of objection under this section shall comply with the notice.

Read in full context — Financial Holding Companies Bill →