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srilawsby aturio
As enacted
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Part VIII · Microfinance Non-Governmental Organizations

27. Registrar’s power to cancel registration

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

(1)

The Registrar may cancel the registration of a microfinance NGO on any one or more of the following grounds:-

(a)

failing to satisfy any debt incurred by it, on such debt becoming due;

(b)

proposing to make or making any composition or arrangement with its creditors or going into liquidation or being wound up or otherwise dissolved;

(c)

ceasing to accept limited savings deposits;

(d)

acting in contravention of any provisions of this

Act or any direction, requirement, rule, order or determination issued, imposed or made under this

Act;

(e)

failing to pay the annual registration fee;

(f)

carrying on its business in a manner likely to be detrimental to the interests of its depositors and other creditors;

(g)

furnishing false, misleading or inaccurate information or concealing or failing to disclose material facts to the Registrar.

(2)

The Registrar shall, before cancelling the registration of a microfinance NGO, serve a notice in writing on such microfinance NGO requiring it to show cause within thirty days from the date of such notice being served as to why its registration should not be cancelled.

(3)

Where the microfinance NGO fails to show cause within the specified period the Registrar may cancel the registration.

(4)

Where in compliance with the notice issued to it under subsection (2), such microfinance NGO, shows cause within the specified period, the Registrar may, after considering the reasons provided and hearing the microfinance NGO in support of its objections –

(a)

not cancel the registration, if he is satisfied that such microfinance NGO has shown sufficient cause as to why its registration should not be cancelled;

or

(b)

cancel the registration, if he is satisfied that such microfinance NGO has not shown sufficient cause as to why its registration should not be cancelled.

(5)

In the event of cancellation of a registration, the microfinance NGO concerned shall be notified forthwith of such cancellation and the cancellation shall take effect from the date of such notification. The Registrar shall publish a notice of such cancellation at least in one each of Sinhala,

Tamil and English daily newspapers circulating in Sri Lanka.

(6)

Where the certificate of registration of a microfinance NGO is cancelled, the Registrar shall remove the name of such microfinance NGO from the register maintained under section 22 and may issue such directions to such non-governmental organisation as he considers necessary.

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