Singapore legislation

Clause 47

Action by Authority if designated financial holding company is unable to meet obligations, etc.

(1)

Where —

(a)

a designated financial holding 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;

(b)

a designated financial holding company becomes unable to meet its obligations, or is insolvent, or suspends payments;

(c)

the Authority is of the opinion that the designated financial holding company —

(i)

is or is likely to become insolvent, or that it is or is likely to become unable to meet its obligations, or that it is about to suspend payments; or

(ii)

has contravened any of the provisions of this Act; or

(d)

the Authority considers it in the public interest to do so,the Authority may exercise any one or more of the powers specified in subsection (2) as appears to it to be necessary.

(2)

Subject to subsection (1), the Authority may —

(a)

require the designated financial holding company concerned immediately to take any action or to do or not to do any act or thing whatsoever in relation to its businesses, including —

(i)

suspending any payments, as the Authority may consider necessary; and

(ii)

removing any of its directors or any executive officer whom the Authority considers unfit to be associated with it;

(b)

subject to subsection (3), appoint one or more persons as statutory adviser, on such terms and conditions as the Authority may specify, to advise the designated financial holding company on the proper management of such of the businesses of the designated financial holding company as the Authority may determine; or

(c)

assume control of and manage such of the businesses of the designated financial holding company as the Authority may determine, or appoint one or more persons as statutory managers to do so on such terms and conditions as the Authority may specify.

(3)

Where the Authority appoints 2 or more persons as statutory managers of a designated financial holding company, it shall specify in the terms and conditions of the appointment which of the duties, functions and powers of the statutory manager —

(a)

may be discharged or exercised by such persons jointly and severally;

(b)

shall be discharged or exercised by such persons jointly; and

(c)

shall be discharged or exercised by a specified person of such persons.

(4)

Where the Authority has exercised any power under subsection (2), it may at any time do one or more of the following:

(a)

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;

(b)

further exercise any of the powers under subsection (2);

(c)

add to, vary or revoke any term or condition specified by the Authority under this section.

(5)

Any designated financial holding company which fails to comply with a direction issued by the Authority under subsection (2)(a) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part thereof during which the offence continues after conviction.

(6)

No liability shall be incurred by —

(a)

a statutory manager; or

(b)

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 —

(i)

the exercise or purported exercise of any power under this Act;

(ii)

the performance or purported performance of any function or duty under this Act; or

(iii)

the compliance or purported compliance with this Act.

Read in full context — Financial Holding Companies Bill →