Banking Act · 2024 Revised Edition · Part · Licensing of Banks
17. Restrictions on and sale of shares
Official textFrom Attorney General's Chambers, unchanged
The powers conferred by this section shall be exercisable where a person —
has contravened section 14 by becoming a controller of any description of a bank in Brunei Darussalam after having been served with a notice of objection to his becoming a controller of that description; or
having become a controller of any description in contravention of that section, continues to be one after such a notice has been served on him.
The Authority may by notice in writing served on the person concerned, direct that any shares to which this section applies shall, until further notice, be subject to one or more of the following restrictions —
Authority
“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
any transfer of, or agreement to transfer, those shares or, in the cases of unissued shares, any transfer of, or agreement to transfer, the right to be issued with them shall be void;
no voting rights shall be exercisable in respect of the shares;
no further shares shall be issued in right of them or in pursuance of any offer made to the holder;
except in a liquidation, no payment shall be made of any sum due from the institution on the shares, whether in respect of capital or otherwise.
The Authority may order the sale of any shares to which this section applies and, if they are for the time being subject to any restrictions under subsection (2), that they shall cease to be subject to those restrictions.
No order shall be made under subsection (3) —
until the end of the period within which an appeal can be brought against the notice of objection concerned; and
if such an appeal is brought, until it has been determined or withdrawn.
Banking 28
Where shares are sold in pursuance of an order under this section, the proceeds of sale, less the costs of the sale, shall be paid in such manner directed by the Authority for the benefit of the person beneficially interested in them and the receipts of such person shall be a full discharge to the Authority.
This section applies —
to all shares in the institution of which the person in question is a controller of the relevant description which are held by him or any of his associate which were not so held immediately before he became such a controller of that institution; and
where the person in question became a controller of the relevant description of an institution as a result of the acquisition by him or any of his associate of shares in another company, to all the shares in that company which are held by him or any of his associate which were not so held before he became such a controller of that institution.
A copy of any notice served on the person concerned under subsection (2) shall be served on the institution or other company to whose shares it relates and, if it relates to shares held by an associate of that person, on that associate.
company
“company” means a body corporate incorporated or registered in Brunei Darussalam under the Companies Act;
Terms defined in s 2
agreement
Defined · s 2“agreement” means an agreement whether formal or informal and whether express or implied;
Authority
Defined · s 2“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
bank
Defined · s 2“bank” means a company which carries on banking business and holds a licence granted under section 4 or 23, and includes all branches and offices in Brunei Darussalam of any such company for the purposes of this Act;
company
Defined · s 2“company” means a body corporate incorporated or registered in Brunei Darussalam under the Companies Act;
Part
Reserve Funds, Dividends, Balance Sheets and Information
Part
Prohibited Business
Part
Minimum Assets Requirements
Part 7
Part
Overseas Branches and Representative Offices of Domestic Banks
Part
Unclaimed Balances
Part
Invitations to Make Deposits
Part