§ 23 — Remedial directions in respect of decrease in equity interests, etc.

23.—(1) This section applies if the Minister is satisfied that —(a)

any condition of approval imposed on a person (called in this section a defaulter) for an approval of an application under section 19(1)(b)) has not been complied with;

(b)

a person (also called in this section a defaulter) has provided false or misleading information or documents in connection with an application for approval under section 19(1)(b);

(c)

in the case of a person (also called in this section a defaulter) who had obtained the Minister’s approval under section 19(6), the designated entity is no longer likely to continue to carry on its business or undertaking because the defaulter ceased to be a Level Y controller or Level Z controller of the designated entity, as the case may be; or

(d)

the Minister would not have granted an approval to the defaulter under section 19(6) had the Minister been aware, at the time of approval, of circumstances relevant to the person’s application for such approval.

(2) If, as a result of a person (called in this subsection the transferee) acquiring any equity interests from a defaulter who is a Level Y controller or Level Z controller of a designated entity (called in this section and section 25 the section 23(2) equity interests), the defaulter ceases to be a Level Y controller or a Level Z controller (as the case may be), the Minister may do any one or more of the following:(a)

direct the transferee to take any steps that are necessary, within the period specified by the Minister, to cease to hold all or any of the section 23(2) equity interests;

(b)

direct the defaulter to take any steps that are necessary, within the period specified by the Minister, to resume being a Level Y controller or Level Z controller, as the case may be;

(c)

direct that the steps mentioned in paragraph (a) or (b) are taken within the period specified by the Minister, and subject to any conditions, that the Minister considers appropriate;

(d)

direct that the transfer or disposal of all or any of the section 23(2) equity interests be restricted, subject to any conditions that the Minister considers appropriate;

(e)

make any other direction that the Minister considers appropriate.

(3) Before issuing any direction to a person under subsection (2), the Minister must —(a)

unless the Minister decides that it is not practicable or desirable to do so, give the person written notice of the Minister’s intention to issue the direction and specify a date by which the person may make written representations with regard to the direction; and

(b)

consider every written representation from the person received on or before the date specified under paragraph (a).

(4) The Minister may, at any time, revoke, vary or discharge any direction under subsection (2), or suspend the operation of any such direction.

(5) A person who fails to comply with a direction under subsection (2) (including a direction that is varied under subsection (4)) within the period specified by the Minister, shall be guilty of an offence.

—(1) This section applies if the Minister is satisfied that —(a)

any condition of approval imposed on a person (called in this section a defaulter) for an approval of an application under section 19(1)(b)) has not been complied with;

(b)

a person (also called in this section a defaulter) has provided false or misleading information or documents in connection with an application for approval under section 19(1)(b);

(c)

in the case of a person (also called in this section a defaulter) who had obtained the Minister’s approval under section 19(6), the designated entity is no longer likely to continue to carry on its business or undertaking because the defaulter ceased to be a Level Y controller or Level Z controller of the designated entity, as the case may be; or

(d)

the Minister would not have granted an approval to the defaulter under section 19(6) had the Minister been aware, at the time of approval, of circumstances relevant to the person’s application for such approval.

(2) If, as a result of a person (called in this subsection the transferee) acquiring any equity interests from a defaulter who is a Level Y controller or Level Z controller of a designated entity (called in this section and section 25 the section 23(2) equity interests), the defaulter ceases to be a Level Y controller or a Level Z controller (as the case may be), the Minister may do any one or more of the following:(a)

direct the transferee to take any steps that are necessary, within the period specified by the Minister, to cease to hold all or any of the section 23(2) equity interests;

(b)

direct the defaulter to take any steps that are necessary, within the period specified by the Minister, to resume being a Level Y controller or Level Z controller, as the case may be;

(c)

direct that the steps mentioned in paragraph (a) or (b) are taken within the period specified by the Minister, and subject to any conditions, that the Minister considers appropriate;

(d)

direct that the transfer or disposal of all or any of the section 23(2) equity interests be restricted, subject to any conditions that the Minister considers appropriate;

(e)

make any other direction that the Minister considers appropriate.

(3) Before issuing any direction to a person under subsection (2), the Minister must —(a)

unless the Minister decides that it is not practicable or desirable to do so, give the person written notice of the Minister’s intention to issue the direction and specify a date by which the person may make written representations with regard to the direction; and

(b)

consider every written representation from the person received on or before the date specified under paragraph (a).

(4) The Minister may, at any time, revoke, vary or discharge any direction under subsection (2), or suspend the operation of any such direction.

(5) A person who fails to comply with a direction under subsection (2) (including a direction that is varied under subsection (4)) within the period specified by the Minister, shall be guilty of an offence.