Finance Companies Act · 2021 Revised Edition · Part · Regulation of Business
19. Dealing by finance company in own shares etc.
Official textFrom Attorney General's Chambers, unchanged
Except as is otherwise expressly provided by this Act, no finance company shall give, whether directly or indirectly and whether by means of a loan guarantee or the provision of security or otherwise, any financial assistance for the purpose of or in connection with a purchase or subscription made or to be made by any person of, or for, any shares in the finance company or, where such company is a subsidiary, in its holding company. or in any way purchase, deal in or lend money on its own shares.
finance company
"finance company" means any company licensed under this Act, to carry on financing business or Islamic financing business, and all branches and offices in Brunei Darussalam of such a company is deemed to be one finance company for the purpose of this Act:
Nothing in subsection (1) shall prohibit -
the provision by a finance company, in accordance with any scheme for the time being in force, of money for the purchase of or subscription for fully-paid shares in the finance company or its holding company, being a purchase or subscription by trustees of or for shares to be held by or for the benefit of employees of such company, including any director holding a salaried employment or office in such company; or
the giving of financial assistance by a finance company to persons, other than directors, bona Jde in the employment of that company or of a subsidiary of that company with a view to enabling those persons to purchase fully-paid shares in the finance company to be held by themselves by way of beneficial ownership.
20
Finance Companies
If there is any contravention of this section, the finance company and every officer of such company who is in default is guilty of an offence and liable on conviction to a fine of $8,000 or imprisonment for 3 years.
company
"company" means a company incorporated or registered under the Companies Act;
Nothing in this section shall operate to prevent the finance company from recovering the amount of any loan made in contravention of this section or any amount for which it becomes liable on account of any financial assistance given in contravention of the provisions of this section.
Terms defined in s 2
company
Defined · s 2"company" means a company incorporated or registered under the Companies Act;
director
Defined · s 2"director" includes any person occupying the position of director of a finance company by whatever name called and includes a person in accordance with whose directions or instructions the directors of a finance company are accustomed to act and an alternate or substitute director;
finance company
Defined · s 2"finance company" means any company licensed under this Act, to carry on financing business or Islamic financing business, and all branches and offices in Brunei Darussalam of such a company is deemed to be one finance company for the purpose of this Act:
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Minimum Liquid Assets
Part
Inspection of Finance Companies
Part 7
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