As enacted

Contents

Finance Business Act 2011 · As enacted · Part II · Directions, Rules and Requirements on Finance Companies

21. Disqualifications for holding certain posts in finance companies

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

(1)

A person shall be disqualified from being appointed or elected, as the case may be, as a director, chief executive officer, secretary or key management personnel of a finance company or from holding such post if such person-

(a)

has been declared an undischarged insolvent or a bankrupt, by any court in Sri Lanka or abroad;

(b)

has been convicted by any court for an offence involving moral turpitude;

(c)

has been convicted by any court for any offence under this Act or the Companies Act, No.07 of 2007;

(d)

is a person against whom action has been taken by the Board under section 51 of this Act;

(e)

(i)

is being subjected to any investigation or inquiry in respect of an act of fraud, deceit, dishonesty or other similar criminal activity, conducted by the police, any regulatory or supervisory authority, professional association, commission of inquiry, tribunal, or any other body established by law, in

Sri Lanka or abroad;

(ii)

has been found guilty in respect of an act of fraud, deceit, dishonesty or other similar criminal activity, by any regulatory or supervisory authority, professional association, commission of inquiry, tribunal, or any other body established by law, in Sri

Lanka or abroad, at any time during the period of fifteen years immediately prior to being so appointed or elected;

(f)

(i)

is being subject to court proceedings for an offence involving an act of fraud, deceit, dishonesty or other similar criminal activity;

(ii)

has been convicted by any court for an offence involving an act of fraud, deceit, dishonesty or other similar criminal activity at any time during the period of fifteen years immediately prior to being so appointed or elected;

(g)

has been removed or suspended by a regulatory or supervisory authority from serving as a director, chief executive or other officer in any bank, finance company or corporate body in Sri Lanka or abroad;

(h)

has been declared by a court of competent jurisdiction to be of unsound mind;

(i)

has been determined by the Board -

(i)

as having carried on finance business-

(a)

in contravention of subsection (1) of section 2 of this Act; or

(b)

in contravention of subsection (1) of section 2 of the Finance Companies

Act, No. 78 of 1988 (prior to its repeal);

(ii)

as having accepted deposits in contravention of subsection (2) of section 2 of this Act; or

(j)

has been a director, chief executive or held any other position of authority in any body corporate or unincorporate body which the Board has determined as having carried on finance business in contravention of subsection (1) of section 2 of this Act or subsection (1) of section 2 of the Finance

Companies Act, No. 78 of 1988 (prior to its repeal)

or having accepted deposits in contravention of subsection (2) of section 2 of this Act.

(2)

If the Board so determines, any person who has been a director, chief executive officer or held any other position of authority in any bank, finance company or financial institution whose licence or registration has been cancelled, shall be disqualified from being appointed or elected as the case may be, as a director, chief executive officer, secretary or key management personnel of a finance comany or from holding such post.

(3)

Any person who acts as a director, chief executive officer, secretary or key management personnel of a finance company while being under any disqualification set out in subsection (1), shall be guilty of an offence under this

Act.

registration has been suspe

Read on from s 22

Part III