Singapore legislation

Clause 23

Objection to existing control of designated financial holding company without bank subsidiary

(1)

The Authority may serve a written notice of objection on any substantial shareholder, 20% controller or indirect controller, other than an excepted person, referred to in section 20 or 21 if the Authority is satisfied that —

(a)

any condition of approval imposed on the person under section 22(2) has not been complied with;

(b)

the person furnished any false or misleading information or document in connection with the person’s application under section 20 or 21;

(c)

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

(d)

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

(e)

it would not have been satisfied as to any of the matters specified in section 22(1) had it been aware, at that time, of circumstances relevant to the person’s application under section 20 or 21.

(2)

The Authority may serve a written notice of objection on any excepted person referred to in section 20 or 21, if the Authority is satisfied that —

(a)

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

(b)

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 Authority shall, unless the Authority decides that it is not practicable or desirable to do so, cause to be given to the person concerned notice in writing of the Authority’s 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 Authority shall consider them for the purposes of determining whether to issue a written notice of objection.

(5)

The Authority shall, in any written notice of objection, specify a reasonable period within which the person 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 20(3), (4) or (5), or ceases to be a substantial shareholder, a 20% controller or an indirect controller, as the case may be; or

(b)

comply with such direction or directions as the Authority may make under section 24.

(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 →