s 28M Remedial directions relating to section 28G
28M.—(1) Subsection (2), (3) or (4) applies if —(a) the LTA is satisfied that a person (called in this section a defaulter) —(i) has contravened section 28G(1) or (3) or failed to comply with a condition imposed on that person under section 28G(6); or (ii) has provided false or misleading information or documents in connection with an application for approval under section 28G(1) or (3); or (b) the LTA would not have granted its approval under section 28G(1) or (3) had it been aware, at the time of approval, of circumstances relevant to a defaulter’s application for such approval. (2) Where the defaulter is a 25% controller, 50% controller or 75% controller of the designated entity, the LTA may do any one or more of the following:(a) direct the defaulter to take such steps as are necessary, within the period specified by the LTA, to cease to be a 25% controller, 50% controller or 75% controller (as the case may be) of the designated entity; (b) direct the transfer or disposal of all or any of the equity interests in the designated entity held by the defaulter or any of the defaulter’s associates (called in this section and section 28N the section 28M(2) equity interests), within such time and subject to such conditions as the LTA considers appropriate; (c) restrict or prohibit the transfer or disposal of all or any of the section 28M(2) equity interests, subject to any conditions that the LTA considers appropriate; (d) make any other direction that the LTA considers appropriate. (3) Where, as a result of a person (called in this subsection the transferee) acquiring any equity interests from the defaulter who is a 25% controller, 50% controller or 75% controller of the designated entity (called in this section and section 28N the section 28M(3) equity interests), the defaulter ceases to be a 25% controller, 50% controller or 75% controller (as the case may be) of the designated entity, the LTA may do one or more of the following:(a) direct the transferee to take such steps as are necessary, within the period specified by the LTA, to cease to hold all or any of the section 28M(3) equity interests; (b) direct the defaulter to take such steps as are necessary within the period specified by the LTA, to resume being a 25% controller, 50% controller or 75% controller (as the case may be) of the designated entity; (c) direct the acquisition, transfer or disposal of all or any of the section 28M(3) equity interests within such time and subject to such conditions as the LTA considers appropriate; (d) restrict or prohibit the transfer or disposal of all or any of the section 28M(3) equity interests, subject to any conditions that the LTA considers appropriate; (e) make any other direction that the LTA considers appropriate. (4) Where the defaulter is an indirect controller of the designated entity, the LTA may do one or both of the following:(a) direct the defaulter, or direct the designated entity or, if the designated entity is a business trust, its trustee-manager, to take such steps as are necessary, within the period specified by the LTA, to cease to be such an indirect controller or to cause the defaulter to cease to be such an indirect controller; (b) make any other direction that the LTA considers appropriate. [Act 20 of 2024 wef 01/04/2025] —(1) Subsection (2), (3) or (4) applies if —(a) the LTA is satisfied that a person (called in this section a defaulter) —(i) has contravened section 28G(1) or (3) or failed to comply with a condition imposed on that person under section 28G(6); or (ii) has provided false or misleading information or documents in connection with an application for approval under section 28G(1) or (3); or (b) the LTA would not have granted its approval under section 28G(1) or (3) had it been aware, at the time of approval, of circumstances relevant to a defaulter’s application for such approval. (2) Where the defaulter is a 25% controller, 50% controller or 75% controller of the designated entity, the LTA may do any one or more of the following:(a) direct the defaulter to take such steps as are necessary, within the period specified by the LTA, to cease to be a 25% controller, 50% controller or 75% controller (as the case may be) of the designated entity; (b) direct the transfer or disposal of all or any of the equity interests in the designated entity held by the defaulter or any of the defaulter’s associates (called in this section and section 28N the section 28M(2) equity interests), within such time and subject to such conditions as the LTA considers appropriate; (c) restrict or prohibit the transfer or disposal of all or any of the section 28M(2) equity interests, subject to any conditions that the LTA considers appropriate; (d) make any other direction that the LTA considers appropriate. (3) Where, as a result of a person (called in this subsection the transferee) acquiring any equity interests from the defaulter who is a 25% controller, 50% controller or 75% controller of the designated entity (called in this section and section 28N the section 28M(3) equity interests), the defaulter ceases to be a 25% controller, 50% controller or 75% controller (as the case may be) of the designated entity, the LTA may do one or more of the following:(a) direct the transferee to take such steps as are necessary, within the period specified by the LTA, to cease to hold all or any of the section 28M(3) equity interests; (b) direct the defaulter to take such steps as are necessary within the period specified by the LTA, to resume being a 25% controller, 50% controller or 75% controller (as the case may be) of the designated entity; (c) direct the acquisition, transfer or disposal of all or any of the section 28M(3) equity interests within such time and subject to such conditions as the LTA considers appropriate; (d) restrict or prohibit the transfer or disposal of all or any of the section 28M(3) equity interests, subject to any conditions that the LTA considers appropriate; (e) make any other direction that the LTA considers appropriate. (4) Where the defaulter is an indirect controller of the designated entity, the LTA may do one or both of the following:(a) direct the defaulter, or direct the designated entity or, if the designated entity is a business trust, its trustee-manager, to take such steps as are necessary, within the period specified by the LTA, to cease to be such an indirect controller or to cause the defaulter to cease to be such an indirect controller; (b) make any other direction that the LTA considers appropriate.