40. Disqualification for holding office

A person shall be disqualified from being appointed or elected as a key management personnel, partner or an office bearer of a licencee, as the case may be or from holding such post, if such person –

is a person convicted of an offence or is being subject to any criminal prosecution involving fraud, deceit, dishonesty, or any other improper conduct;

has been declared an undischarged insolvent or a bankrupt, by any court within or outside

has been convicted by any court for an offence involving financial mismanagement or moral turpitude;

has been convicted by any court for any offence under this Act, or the Banking Act, No. 30 of 1988, the Finance Business Act, No. 42 of 2011, the Finance Leasing Act, No. 56 of 2000, or the

is being subject to any investigation or inquiry in respect of an act of fraud, deceit, dishonesty or other similar criminal activity, by any regulatory or supervisory authority, professional association, commission of inquiry, tribunal, or any other body established by law within or outside in Sri Lanka;

has been found guilty in respect of an act of fraud, deceit, dishonesty or other similar criminal activity, by any regulatory or supervisory authority, professional association, commission of inquiry, tribunal, or any other body established by law, within or outside

has been removed or suspended by a regulatory or supervisory authority from serving as a director, chief executive officer or other officer in any bank, finance company or corporate body within or outside Sri Lanka;

has been removed or suspended by any bank, finance company or corporate body within or outside Sri Lanka, on the grounds of fraud, deceit, dishonesty, or other similar criminal offence, from serving as a director, chief executive officer or other officer in any bank, finance company or corporate body within or outside Sri Lanka;

has been declared by a court of competent jurisdiction to be of unsound mind;

has been a key management personnel of a licensed bank, a licensed finance company, any registered leasing establishment or any licensed insurance company, whose licence has been cancelled;

has been a director, chief executive officer or held any other position of authority in any body corporate or in any unincorporated body which the Central Bank has determined as contravened the provisions of subsections (1) and (2) of section 2 of the Finance Business Act, No. 42

has been a key management personnel, an office bearer, partner of any licencee, of which the licence has been cancelled by the Authority; or

has failed to satisfy any judgment or order of any court whether within or outside Sri Lanka, or to repay a debt.