§ 39 — Suspension or cancellation of licence, etc.

39.—(1) Subject to subsection (2), if any licensee for a cross‑border railway —(a)

contravenes or fails to comply with, or fails to secure the compliance by its employees, agents or subcontractors with —(i)

any of the conditions of its licence;

(ii)

any code of practice applicable to the licensee; or

(iii)

any requirement of or under this Act which is applicable to the licensee in relation to that railway and for which no criminal penalty is prescribed for a contravention of the requirement;

(b)

is convicted of any offence under this Act;

(c)

in the opinion of the LTA, fails or is likely to fail to provide and maintain a safe and secure service in relation to that cross‑border railway;

(d)

fails to comply with any direction given by the LTA under section 37 in relation to that cross‑border railway;

(e)

fails to comply with any provisional order confirmed under section 38;

(f)

fails to comply with any service suspension order under section 56 in relation to that cross‑border railway;

(g)

goes into compulsory or voluntary liquidation other than for the purpose of reconstruction or amalgamation; or

(h)

makes any assignment to, or composition with, its creditors or, if a company, is unable to pay its debts,

the LTA may, by notice in writing and without any compensation, do all or any of the following:

(i)

suspend or cancel the licence of the licensee for that cross‑border railway;

(ii)

require the licensee to pay, within a specified period, a financial penalty of such amount as the LTA thinks fit, which in any case must not exceed the maximum amount specified in subsection (2).

(2) For the purposes of requiring a licensee for a cross‑border railway to pay a financial penalty under subsection (1)(ii), the maximum amount means the higher of the following amounts:(a)

$1 million; or

(b)

10% of the licensee’s gross annual revenue that is received during the licensee’s last‑completed financial year (as ascertained from the licensee’s latest audited accounts) from the management of railway assets and provision of open network services, or the provision of cross‑border train services (as the case may be) involving that cross‑border railway.

(3) For the purposes of subsection (1)(h), a company is unable to pay its debts if it is a company which is deemed to be so unable under section 254(2) of the Companies Act (Cap. 50).

—(1) Subject to subsection (2), if any licensee for a cross‑border railway —(a)

contravenes or fails to comply with, or fails to secure the compliance by its employees, agents or subcontractors with —(i)

any of the conditions of its licence;

(ii)

any code of practice applicable to the licensee; or

(iii)

any requirement of or under this Act which is applicable to the licensee in relation to that railway and for which no criminal penalty is prescribed for a contravention of the requirement;

(b)

is convicted of any offence under this Act;

(c)

in the opinion of the LTA, fails or is likely to fail to provide and maintain a safe and secure service in relation to that cross‑border railway;

(d)

fails to comply with any direction given by the LTA under section 37 in relation to that cross‑border railway;

(e)

fails to comply with any provisional order confirmed under section 38;

(f)

fails to comply with any service suspension order under section 56 in relation to that cross‑border railway;

(g)

goes into compulsory or voluntary liquidation other than for the purpose of reconstruction or amalgamation; or

(h)

makes any assignment to, or composition with, its creditors or, if a company, is unable to pay its debts,

the LTA may, by notice in writing and without any compensation, do all or any of the following:

(i)

suspend or cancel the licence of the licensee for that cross‑border railway;

(ii)

require the licensee to pay, within a specified period, a financial penalty of such amount as the LTA thinks fit, which in any case must not exceed the maximum amount specified in subsection (2).

(2) For the purposes of requiring a licensee for a cross‑border railway to pay a financial penalty under subsection (1)(ii), the maximum amount means the higher of the following amounts:(a)

$1 million; or

(b)

10% of the licensee’s gross annual revenue that is received during the licensee’s last‑completed financial year (as ascertained from the licensee’s latest audited accounts) from the management of railway assets and provision of open network services, or the provision of cross‑border train services (as the case may be) involving that cross‑border railway.

(3) For the purposes of subsection (1)(h), a company is unable to pay its debts if it is a company which is deemed to be so unable under section 254(2) of the Companies Act (Cap. 50).