Finance Business Act 2011 · As enacted · Part III · Examinations and Supervisory Actions on Finance Companies
24. Examination of books and accounts etc of finance companies
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
The Director by himself, or by any officer of the
Central Bank or any other person, authorized on that behalf by the Director, may examine the books and accounts of every finance company at least once in each examination period, and may make such further examinations in respect of any specified finance company as the Director may deem fit and for such purpose, may do one or more of the following-
require any finance company, or a director, secretary, manager, employee, auditor, agent or contractor of any finance company to furnish him within such period and in such manner or form as he may specify, information as he considers necessary;
require any finance company or a director, secretary, manager, employee, auditor, agent or contractor of any finance company to produce for inspection books, records, files, registers, and such other documents, maintained in print, electronic or any other form, of such finance company and to provide authenticated copies in any form as required of such books, records, files, registers and such other documents;
enter the premises or storage area of any finance company, and notwithstanding anything to the contrary in any other written law, examine books, records, files, registers, and such other documents, maintained in print, electronic or any other form, of such finance company and may obtain copies, authenticated or otherwise, in any form of such books, records, files, registers and such other documents:
Provided however, if the Director receives reasonable information that the books, records, files, registers and such other documents, maintained in print, electronic or any other form, of a finance company are kept at any place other than the places specified above, the Director or any person authorized by the Director shall have the power to enter and examine such other place and examine such books, records, files, registers and such other documents and if necessary obtain copies, authenticated or otherwise, thereof in any form as required:
Provided further, if the Director believes that there will be resistance or obstruction for such entering or search or there will be concealment of information, he may obtain a warrant from a
Magistrate to enable him or any person authorized by the Director to enter upon and search such place specified in such warrant and may take into custody of the Director or the person so authorised any books, records, files, registers and such other documents, maintained in print, electronic or any other form, and electronic devices containing relevant information. The Director may when entering upon, any such place obtain the assistance of the office-in-charge of the police station within whose area of jurisdiction such place is situated.
For the purposes of this paragraph any person who is not an officer of the Central Bank when entering the premises of such finance company shall be accompanied by the Director or an officer of the
Central Bank authorized by the Director.
require the holding company, any subsidiary or associate company of any finance company, or any subsidiary or associate company of the holding company of any finance company, or any other company that in view of the Director has a substantial financial interest or significant management interest in any finance company to furnish information as the Director may consider necessary and to produce for inspection books, records, files, registers and such other documents, maintained in print, electronic or any other form, of such company at such time, date and place and in a manner or form as the Director may specify and to provide in any form as required, authenticated copies of such books, records, files, registers and such other documents;
require any finance company or a director, manager, employee, agent, contractor or secretary of any finance company to submit the accounts of such finance company, furnish such information and produce such books, records, files, registers, and such other documents, maintained in print, electronic or any other form, for audit by an auditor authorized by the Director;
question and record statements of or if necessary direct, any director, shareholder, secretary, manager, employee, agent, auditor or contractor of any finance company or of any other person who may be acquainted with or is aware of or is in possession of, information regarding the business or corporate affairs of such finance company to submit answers to the questions raised by way of an affidavit or if necessary administer oath or affirmation in accordance with the Oaths or
Affirmations Ordinance (Chapter 17) and cause questions to be asked of and record or cause the recording of statements;
call for information by notice in writing from any person who may be acquainted with or is aware of or is in possession of or appears to have information regarding the business or corporate affairs of any finance company and if required summon such person for an interview.
A Report on such examination shall be furnished to the Board by the Director after the examination is completed.
The Board may recover the costs of such examination from the finance company.
It shall be the duty of every person to comply with any requirement imposed on him under this section. Any person who-
fails to provide any information or produce for inspection any book, record, file, register or such other document, material or object required under this section;
fails to attend in person when summoned for an interview;
provides false, incomplete or incorrect or misleading information, book, record, file, register or such other document, material or object; or
obstructs the Director or any other person authorized by the Director under subsection (1)
in the performance of any function under subsection (1), shall be guilty of an offence under this Act.
In this section “examination period” means a period as may be fixed for the purpose by the Board.
Part IV
Financial Statements and Audit of Finance Companies
Part V
Regulatory and Resolution Actions on Finance Companies
Part VI
Insurance of Deposits
Part VII
Action Against Persons Carrying on Finance Business or Accepting Deposits Without Authority
Part VIII
Offences and Penalties
Part IX