Banking Act (Cap. 371), article 13C

13C. (1) Notwithstanding anything contained in any other law and without prejudice to articles 11B, 13(1) and 13(3) and Arti cle 21a of the CRD , the consent of the competent authority given in writing shall be required before any credit institution may lawfully: (a) sell or dispose of its business or any significant part thereof; (b) merge with any other company, whether a credit institution or otherwise; (c) undergo any reconstruc tion or division; or (d) increase or reduce its nomin al or issued share capital or effect any material change in the voting rights: Provided that this will be without prejudice to the provisions of the CRR on the conditions for reducing own funds. (2) It shall be the duty of all directors and qualifying shareholders of a credit institution to notify the competent authority forthwith in writing upon becoming aware that such credit institution intends to take any of the actions set out i n sub- article(1). (3) Within three months of receipt of such notification or receipt of such information as the competent authority may lawfully require, whichever is the later, the competent authority shall issue a notice - (a) granting unconditional consent to the taking of the action; (b) granting consent to the taking of the action subject to 42 CAP. 371.] BANKING such conditions as the comp etent authority may deem appropriate; or (c) refusing consent to the taking of the action, and if it refuses to grant consent it shall inform the person o r the credit institution concerned in writing of the r eason for its r efusal. (4) If any person or any credit institution takes or decides to take any action set out in sub-article (1) without obtaining th e consent of the competent authority, then, without prejudice to any other penalty which may be imposed under this Act, the competen t authority shall have the power to make an order: (a) restraining such person or credit institution from taking or continuing with such action; (b) declaring such action to b e void and of no effect; (c) requiring such person or credit institution to take such steps as may be necessary to restore the position existing immediately before the action was taken; (d) restraining such person or credit institution from exercising any rights whic h such action would, if lawful, have conferred upon them, including the right to receive any payment or to exercise any voting rights attaching to the shares acquired; (e) restraining such person or credit institution from taking any similar action or any other action within the categories set out in sub-article (1). Criteria for qualifying holdings. Added by: X. 2015.19; Amended by: LXXI.2021.36.