Long Title

Part I PRELIMINARY

Part II LICENSING OF FINANCE COMPANIES

Part III RESERVE FUNDS, DIVIDENDS, BALANCE-SHEETS AND INFORMATION

Part IV REGULATION OF BUSINESS

Part V MINIMUM LIQUID ASSETS

Part VI INSPECTION AND CONTROL OF FINANCE COMPANIES

Part VII SUBMISSION OF ACCOUNTS AND DUTIES OF AUDITORS

Part VIII MISCELLANEOUS

Legislative History

Comparative Table

PART VI
INSPECTION AND CONTROL OF FINANCE COMPANIES
Inspection and investigation of finance companies and production of books, etc.
33.
—(1)  The Authority may, from time to time, inspect or cause to be inspected under conditions of secrecy, the books, accounts and transactions of any finance company and of any branch, agency or office outside Singapore opened by a finance company incorporated in Singapore.
(2)  The Authority may at any time make an investigation, under conditions of secrecy, of the books, accounts and transactions of a finance company, if the Authority has reason to believe that the finance company —
(a)
is carrying on its business in a manner detrimental to the interests of its depositors and other creditors;
(b)
has insufficient assets to cover its liabilities to the public; or
(c)
is contravening the provisions of this Act.
(3)  The Authority may appoint any auditor, other than the auditor appointed by the finance company under section 205 of the Companies Act (Cap. 50), to exercise the powers of the Authority under subsections (1) and (2).
(4)  For the purpose of an inspection or investigation under this section, a finance company shall afford the Authority access to its books, accounts and documents and shall give such information and facilities as may be required to conduct the investigation.
(5)  No books, accounts and documents referred to in subsection (4) shall be required to be produced at such times and at such places as would interfere with the proper conduct of the normal daily business of that finance company.
(6)  If any book, account or document or information is not produced in accordance with subsection (4), the finance company concerned shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 and to a further fine of $1,000 for every day during which the default continues after conviction.
[33/84]
Finance company unable to meet obligation to inform Authority
34.  Any finance company that considers that it is likely to become unable to meet its obligations or is about to suspend payments shall forthwith inform the Authority of such fact.
[33/84]
Action by Authority if finance company is unable to meet obligations or is conducting business to detriment of its depositors or creditors
35.
—(1)  Where —
(a)
a finance company informs the Authority that it is likely to become unable to meet its obligations, or that it is insolvent or about to suspend payments;
(b)
a finance company becomes unable to meet its obligations, or is insolvent, or suspends payments;
(c)
after an inspection or investigation is made under section 33, the Authority is of the opinion that the finance company —
(i)
has carried on or is carrying on its business in a manner likely to be detrimental to the interest of its depositors or its creditors;
(ii)
is insolvent or is likely to become unable to meet its obligations or is about to suspend payments;
(iii)
has contravened or failed to comply with any of the provisions of this Act; or
(iv)
has contravened or failed to comply with any conditions attached to its licence; or
(d)
the Authority considers it in the public interest to do so,
the Authority may exercise one or more of the powers specified in subsection (2) as appears to it to be necessary.
[33/84]
(2)  Subject to subsection (1), the Authority may —
(a)
require the finance company concerned forthwith to take any action or to do or not to do any act or thing whatsoever in relation to its business as the Authority may consider necessary;
(b)
appoint a person to advise that finance company in the proper conduct of its business; or
(c)
assume control of and carry on the business of that finance company or direct some other person to assume control of and carry on the business of that finance company.
[33/84]
(3)  The Authority may, upon representation made to it or on its own motion, modify or cancel any action taken by it under subsection (2) and in so modifying or cancelling any action may impose such conditions as it thinks fit, subject to which the modification or cancellation shall have effect.
[33/84]
Powers of Authority
36.  Where the Authority has taken action under section 35(2), the Authority may, without prejudice to the powers conferred by section 15(1)(b), exercise one or more of the following powers:
(a)
confirm, vary or reverse any requirement, appointment or direction made by it;
(b)
make such order as it may think fit in relation to the affairs of the finance company and exercise any power which it may exercise under section 35(2);
(c)
apply to the High Court for the winding up of the finance company by the High Court.
[33/84; 42/2005]
Duration of control
37.
—(1)  Where the Authority has assumed control of the business of a finance company under section 35, the Authority shall remain in control of, and continue to carry on, the business of that finance company in the name of and on behalf of the finance company until such time as the Authority is satisfied that the reasons for which the Authority assumed control of the business have ceased to exist, or that it is no longer necessary for the protection of the depositors of the finance company that the Authority should remain in control of the business.
[33/84]
(2)  Where the Authority has assumed control of the business of a finance company under section 35 or ceased to control the business of the finance company under this section, the Authority shall notify that fact in the Gazette.
[33/84]
Finance company under control of Authority to co-operate with Authority
38.
—(1)  Where the Authority has assumed control of the business of a finance company under section 35, the finance company shall submit its business to the control of the Authority and shall provide the Authority with such facilities as may be required to carry on the business of that finance company.
[33/84]
(2)  Any finance company which fails to comply with subsection (1) or with any requirement of the Authority thereunder shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 and, in the case of a continuing offence, to a further fine of $2,000 for every day during which the offence continues after conviction.
[33/84]
Remuneration and expenses of Authority and others in certain cases
39.
—(1)  The Authority may at any time (whether or not the appointment of such person has terminated) fix the remuneration and expenses to be paid by a finance company to any person appointed by the Authority under section 35(2) or 36 to advise the finance company in the proper conduct of its business.
[33/84]
(2)  Where under section 35(2) or 36 the Authority has assumed control of the business of a finance company or some other person has assumed control of the business of a finance company pursuant to a direction or order of the Authority, the Authority may, at any time, whether or not it or that other person has ceased to be in control of the business of the finance company, fix the remuneration and expenses to be paid by the finance company to the Authority and to any person authorised or appointed by the Authority under section 42(2) to assist it in the control of and the carrying on of the business of the finance company, or to that other person, as the case may be.
[33/84]