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As enacted
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Part VIII · Microfinance Non-Governmental Organizations

26. Powers of the Registrar

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

Where the Registrar is of the opinion that a microfinance NGO–

(a)

is carrying on or is in the process of carrying on, its business adopting unsound or improper financial practices detrimental to the interest of its depositors and other creditors; or

(b)

has contravened or failed to comply with any provisions of this Act, or any direction, rule, order or requirement made or imposed thereunder, the Registrar may take any one or more of the following actions:–

(i)

direct such microfinance NGO to cease any such practice;

(ii)

direct such microfinance NGO to forthwith or within such period as may be specified by the Registrar, comply with the provisions of this Act or rule, or requirement made or imposed thereunder which such microfinance

NGO has failed to comply with;

(iii)

direct such microfinance NGO to take necessary action to correct the negative conditions resulting from such practice or contravention;

(iv)

restrain any director, manager or controller of the microfinance NGO from carrying out any function in or in relation to the microfinance NGO;

(v)

remove any director, manager or employee of the microfinance NGO;

(vi)

re-organize the microfinance NGO by arranging for the reconstitution of its board of directors:

Provided however, the Registrar shall, before taking any of the actions referred to in subparagraph (iv), (v) or (vi) of this section, serve a notice in writing on such director, manager, controller, employee or the board of directors requiring him or it, as the case may be, to show cause within fourteen days from the date of such notice, why action as referred to in the relevant subparagraph should not be taken against him or it, as the case may be, and satisfy himself that no satisfactory cause has been made out.

Read on from s 27

Part IX

Principles, Standards and Guidelines Laid Down by the Board

Read on from Part IX

Part X

Immunity from Prosecution

Read on from Part X

Part XI

General

Read on from Part XI

Schedules