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BUILDING SOCIETIES ACT, 1989
Supplementary provisions in relation to revocation of an authorisation
Revocation of authorisation.
1. (1) If the Bank proposes to revoke an authorisation (other than in pursuance of a request by the holder) it shall serve on the building society and on every officer a notice stating—
(a) that it proposes to revoke the authorisation,
(b) its grounds for the proposed revocation, and
(c) that the society may, within 21 days after the date of the giving of the notice, make representations in writing to the Central Bank in relation to the proposed revocation.
(2) If the grounds for the proposed revocation include the ground that any officer of the society is not a fit and proper person to hold office in the society, the Central Bank shall also serve notice of that ground on the officer concerned giving him the right to make representations with respect to his fitness and propriety for office within such period, not being less than 21 days after service of the notice, as is specified in the notice.
(3) The Central Bank shall, before deciding whether or not to revoke the authorisation, consider any representations made to it under subparagraph (1) or (2) in relation to the proposed revocation and shall serve on the society and on every officer a notice stating its decision and the grounds for it and the society may, within one month of receipt of the Bank's decision, appeal to the Court against it.
Provisions consequent on revocation.
2. (1) Where an authorisation is revoked and the society is not being wound up—
(a) the society shall continue to be subject to the duties and obligations imposed on it by or under this Act until all its liabilities in respect of shares and deposits have been discharged to the satisfaction of the Central Bank;
(b) the society shall, as soon as may be, notify all persons holding shares in or deposits with it and the Central Bank of the measures it is taking to discharge in full and without undue delay all its liabilities in respect of such shares and deposits; and
(c) the Central Bank may, if the society fails to notify it within a reasonable time in accordance with subparagraph (1) (b) or if it considers that the measures taken or proposed to be taken by the society to discharge its liabilities to shareholders and depositors are not satisfactory, give a direction prohibiting the society for such period, not exceeding 6 months, as may be specified in the direction, from—
(i) dealing with or disposing of any of its assets, or specified assets, in any manner,
(ii) engaging in any transaction or class of transaction or specified transaction, or
(iii) making payments,
without the prior authorisation of the Central Bank and may require it to prepare and submit to the Bank within 2 months of the direction, for its approval, a scheme for the orderly discharge in full of its liabilities to its shareholders and depositors.
(2) Where a direction to which subparagraph (1) relates is given the provisions of the Fifth Schedule shall apply with any necessary modifications.
(3) Subject to subparagraph (4), any obligation to make a payment to the society, which by virtue of section 17 , the society is prohibited from accepting, shall be wholly rescinded.
(4) If, when a society's authorisation is revoked, a member is under an obligation to make payments to the society which represent instalments of the amount due by way of subscription for a share in the society and which, by virtue of section 17 , the society is prohibited from accepting, the obligation shall (subject to anything in the rules of the society and any agreement between the society and the member) be suspended in respect of each instalment for the period during which no authorisation is in force; and accordingly if the society is subsequently granted authorisation the sum due shall again become payable by instalments.
(5) It shall be the duty of the society to make reasonable arrangements for using the funds of the society to meet applications by depositors with and shareholders in the society (being applications made in accordance with the rules of the society) for repayment of the money deposited or subscribed by them.
(6) A society whose authorisation has been revoked may apply to the Central Bank for a new authorisation in accordance with section 17 .
(7) The Central Bank shall note the revocation of the society's authorisation and the date it takes effect in the public file of the society and, as soon as may be after the revocation of an authorisation, publish notice of the revocation in such manner as it thinks fit.
(8) Where a society's authorisation is revoked and the society is being wound up, the liquidator, notwithstanding the revocation, may continue to carry on the business of the society and to hold himself out as a building society (with all the rights and obligations attached thereto) to such extent as the Central Bank (or the Court if the society is being wound up under the supervision of the Court) may consider necessary to enable him to discharge his functions.