9. Duty of finance company to notify Board of cessation of finance business

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

Where any finance company licensed under this

Act has ceased to carry on finance business, a notice of such cessation shall be given to the Board forthwith upon such cessation by such company.

(2)

On receipt of a notice of cessation under subsection (1), the Board may issue to such finance company directions for winding up or for divesting the finance business of the finance company or for the settlement in such manner as may be specified by the Board of the deposit liabilities of the finance company and such other directions incidental thereto.

(3)

Where the Board has reasonable grounds to believe that any finance company licensed under this Act is not carrying on finance business, the Board may send to such company a notice by registered post requiring such company to furnish proof, within two weeks from the date of such notice, that it has not ceased to carry on finance business.

After the expiration of two weeks from the date of such notice or in the event of the company furnishing proof after considering such proof, the Board may withdraw such notice, or may issue to such finance company directions for winding up or for divesting the finance business of the finance company or for the settlement in such manner as may be specified by the Board of the deposit liabilities of the finance company and such other directions incidental thereto.

(4)

Where a finance company fails to comply with directions issued under subsections (2) or (3) within the period specified by the Board, which period may be extended by the Board in exceptional circumstances having considered the steps taken by the finance company to comply with such directions, the Board may require the

Director to file action for winding up of the finance company and the provisions of section 32 shall apply thereto.

Read on from s 10

Part II

Directions, Rules and Requirements on Finance Companies

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Part III

Examinations and Supervisory Actions on Finance Companies

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Part IV

Financial Statements and Audit of Finance Companies

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Part V

Regulatory and Resolution Actions on Finance Companies

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Part VI

Insurance of Deposits

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Part VII

Action Against Persons Carrying on Finance Business or Accepting Deposits Without Authority

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Part VIII

Offences and Penalties

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Part IX

General

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