Finance Business Act 2011 · As enacted · Part V · Regulatory and Resolution Actions on Finance Companies
37. Cancellation of licence of a finance company
Official English translation. The Sinhala text prevails.
Official translationFrom Department of Government Printing, unchanged
Where the Board is satisfied that any finance company has-
failed to commence business within nine months of the issue of the licence;
failed to pay up any debts incurred by it, on such debts becoming due;
had petition or action for relief filed against such finance company, and has had appointed in respect of such finance company under any bankruptcy law or any other written law which provides for relief for debtors or which relates to debtors, a liquidator, custodian or receiver;
ceased to carry on finance business;
continuously been violating or contravening the provisions of this Act or any direction or rule issued thereunder;
failed to pay the annual licence fee; or
carried on, or is carrying on, its business in a manner likely to be detrimental to the interests of its depositors and other creditors, the Board may, give notice to the finance company that it would cancel the licence issued to such finance company.
A finance company may tender objections in writing to the Board against the notice of cancellation under subsection (1), within thirty days of the date of such notice, giving reasons why the licence issued to it under section 5
should not be so cancelled.
After the expiration of sixty days from the date of the notice of the cancellation and after considering the objections tendered to the Board under subsection (2), the
Board may withdraw such notice or cancel the licence issued to the finance company, and such cancellations shall take effect on the date of the decision of the Board to cancel the licence or such other later date as the Board may deem appropriate.
The decision of the Board to cancel the licence shall be notified to the finance company and the notification of cancellation shall be published in the Gazette and in at least one Sinhala, Tamil and English daily newspapers circulating in Sri Lanka, informing the public that such company is no longer authorized to carry on finance business.
Where the licence of a finance company is cancelled the Board shall remove the name of the finance company from the register maintained under subsection (1) of section 7 and may issue such directions as it considers necessary, including directions for winding up or require the Director to apply for winding up of the company in which event the provisions of section 32, except subsection (3) thereof, shall apply.
Where the finance company fails to comply with any directions issued under subsection (5) within the time specified by the Board, the Board may require the Director to file action for the winding up of the finance company, and the provisions of section 32, except subsection (3)
thereof shall apply.
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