Stock Exchange Act, 1995
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Revocation of approval. |
14.—(1) The Bank may revoke its approval of an approved stock exchange in all or any of the following circumstances, namely, where— | |
(a) a request has been made to it in that behalf by an approved stock exchange, | ||
(b) an approved stock exchange— | ||
(i) has failed to operate as a stock exchange within 12 months of the date on which the approval to be an approved stock exchange was granted, or | ||
(ii) has failed to operate as a stock exchange for a period of more than 6 months, or | ||
(iii) is being wound up. | ||
(2) Without prejudice to the power of the Bank to revoke an approval under subsection (1) of this section, the Bank may apply to the Court, in a summary manner, for an order revoking the approval of an approved stock exchange in any or all of the following circumstances, namely, where— | ||
(a) it is expedient to do so in the interest of the proper and orderly regulation of approved stock exchanges or their member firms or in order to protect investors or in any or all of these circumstances; | ||
(b) an approved stock exchange has been convicted on indictment of any offence under this Act or any Act under which the Bank exercises statutory functions or any offence involving fraud, dishonesty or breach of trust; | ||
(c) circumstances have materially changed since the granting of approval to that stock exchange such that, if an application for approval was made at the time of the application to the Court, a different decision would be taken in relation to the application for approval; | ||
(d) the approval was obtained by knowingly or recklessly making false or misleading statements, or by knowingly or recklessly using false or misleading information; | ||
(e) an approved stock exchange has failed to comply to a material degree with a requirement of this Act; | ||
(f) an approved stock exchange no longer fulfils any or all of the conditions or requirements which were imposed when approval was granted or which were subsequently imposed; | ||
(g) an approved stock exchange— | ||
(i) no longer complies with capital or other financial requirements, specified by the Bank from time to time, or | ||
(ii) is not maintaining or is unlikely to be able to maintain adequate capital or other financial resources having regard to the volume and nature of its business; | ||
(h) an approved stock exchange becomes unable or, in the opinion of the Bank, is likely to become unable to meet its obligations to its creditors or suspends payments lawfully due; | ||
(i) a director, manager or qualifying shareholder of an approved stock exchange is no longer deemed by the Bank to fulfil the conditions of competence and probity required by section 9 of this Act to be a director or manager or a qualifying shareholder of an approved stock exchange; | ||
(j) an approved stock exchange has so organised its business or corporate structure that the approved stock exchange and, where appropriate, any related undertaking or associated undertaking, either collectively or individually, is no longer capable of being supervised to the satisfaction of the Bank under this Act. | ||
(3) When the Bank proposes to revoke the approval of an approved stock exchange or proposes to apply to the Court for an order to revoke approval of an approved stock exchange the following procedure shall apply, namely, the Bank shall serve notice on the stock exchange concerned and each of its member firms of its intention and shall state its reasons in the said notice. | ||
(4) Where an application is made to the Court under this section the Court may make such interim or interlocutory orders as the circumstances may require. | ||
(5) Where approval of a stock exchange is revoked and where the stock exchange concerned is not a company which is being wound up— | ||
(a) the former approved stock exchange and its member firms shall continue to be subject to the duties and obligations imposed by this Act until all the liabilities, duties and obligations of the said stock exchange have been discharged to the satisfaction of the Bank, | ||
(b) the former approved stock exchange shall, as soon as possible, after the revocation, notify the Bank, its member firms and such other persons, if any, as the Bank indicates are to be notified of the measures being taken to discharge without undue delay the liabilities, duties and obligations of the said stock exchange, | ||
(c) in the case where— | ||
(i) the former approved stock exchange has notified the Bank in accordance with paragraph (b) of this subsection and the Bank is of the opinion that the measures being taken or proposed to be taken for the purposes of that paragraph are not satisfactory, or | ||
(ii) the former approved stock exchange has not so notified the Bank and the Bank is of the opinion that the said stock exchange has failed to so notify as soon as possible after the approval is revoked, or | ||
(iii) the Bank is of the opinion that the former approved stock exchange has failed to take all reasonable steps to notify persons which the Bank has indicated, under paragraph (b) of this subsection, are to be notified, | ||
then, subject to subsection (9) of this section, the Bank may give a direction in writing to the former approved stock exchange or, where necessary, to any of its authorised member firms for such period, not exceeding six months, prohibiting the former approved stock exchange or its authorised member firms, as the case may be, so directed from any or all of the following, namely— | ||
(I) creating any liabilities; | ||
(II) dealing with or disposing of any assets or specified assets of the former approved stock exchange or of its authorised member firms in any manner; | ||
(III) engaging in any transaction or class of transactions or specified transaction; | ||
(IV) making payments; | ||
without the prior authorisation of the Bank, and the Bank may further direct that former approved stock exchange within two months of the initial direction to prepare and submit to the Bank for its approval a scheme for the orderly discharge of the liabilities, duties and obligations concerned. | ||
(6) Where the approval of a stock exchange is revoked and the stock exchange is a company which is being wound up— | ||
(a) the liquidator of the former approved stock exchange shall, in addition to his duties and obligations in respect of the winding-up, be subject to the duties and obligations to which the former approved stock exchange would be subject if it were a former approved stock exchange to which subsection (5) of this section relates and that subsection shall for the purposes of this subsection be construed accordingly; | ||
(b) notwithstanding paragraph (a) of this subsection, the Bank may, where its approval of a stock exchange is revoked and where the Bank considers it appropriate in the circumstances, remove, on giving notice to that effect in writing to the former approved stock exchange, the duties and obligations imposed on the liquidator concerned to comply with paragraph (b) of subsection (5) of this section and may impose in writing on that liquidator such further duty or obligation which corresponds to that set out in paragraph (b) of that subsection; | ||
(c) nothing in this subsection shall be construed as affecting any duty or obligation under this Act of the member firms of the former approved stock exchange concerned. | ||
(7) The Bank shall publish notice of any revocation of an approval of a stock exchange in the Iris Oifigiúil within 28 days of revocation. | ||
(8) An approved stock exchange whose approval has been revoked under this Act shall cease to operate as a stock exchange and it shall be an offence for any person to provide an investment service on a former approved stock exchange. | ||
(9) Where the Bank gives a direction under subsection (5) of this section, it may apply to the Court, on being satisfied that the direction has not been complied with and the Court may confirm or set aside or vary the direction on such terms and for such period as the Court thinks fit. | ||
(10) The Bank shall not exercise its powers under subsection (2) (i) of this section unless it has given the approved stock exchange an opportunity to remove the director, manager or qualifying shareholder or otherwise deal with the concerns of the Bank in relation to the probity or competence of the person concerned within such period of time as the Bank may specify. | ||
(11) An application under this section may be heard otherwise than in public. |