Companies Act, 1990

Authorisation by Bank.

256.—(1) An investment company shall not carry on business in the State unless it has been authorised to do so by the Bank on the basis of criteria approved by the Minister.

(2) A person shall not carry on business on behalf of an investment company, insofar as relates to the purchase or sale of the shares of the investment company, unless the investment company has been authorised in the manner referred to in subsection (1).

(3) The Bank shall not authorise an investment company to carry on business in the State unless the company has paid up share capital which, in the opinion of the Bank, will be sufficient to enable it to conduct its business effectively and meet its liabilities.

(4) An application by an investment company for the authorisation referred to in subsection (1) shall be made in writing to the Bank and contain such information as the Bank may specify for the purpose of determining the application (including such additional information as the Bank may specify in the course of determining the application).

(5) Where the Bank proposes to grant an authorisation to an investment company under this section and the Bank is satisfied that the company will raise capital by promoting the sale of its shares to the public, the Bank shall, in granting the authorisation, designate the company as an investment company which may raise capital in that manner, and “designated company” in this section and section 257 shall be construed accordingly.

(6) In the event that a designated company does not promote the sale of its shares to the public within a period, not greater than six months, which shall be specified in the authorisation under this section, the company shall, on the expiry of the period so specified, be deemed to have ceased to be a designated company.

(7) An investment company which is not a designated company shall not raise capital by promoting the sale of its shares to the public.

(8) A company incorporated outside the State which, if it were incorporated in the State, would be a company to which this Part applies shall not advertise or market its shares in any way in the State without the approval of the Bank, which approval may be subject to such conditions as the Bank considers appropriate and prudent for the purposes of the orderly and proper regulation of so much of the business of companies of that type as is conducted in the State.

(9) This section is without prejudice to sections 6 and 19 of the Companies (Amendment) Act, 1983 .