Banks Act, 1990 (Act No. 94 of 1990)Chapter IV : Shareholding in, and Registration of Controlling Companies in respect of, Banks
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| (1) | A controlling company investing money— |
| (a) | in undertakings other than banks or institutions which conduct business similar to the business of a bank in a country other than the Republic, controlling companies or companies of which the main object is the holding or development of property which is used or intended to be used mainly for the purpose of conducting the business of a bank; or |
| (b) | in fixed property which is not used or intended to be used mainly for the purpose of conducting the business of a bank, |
shall manage its transactions in such investments in such a way that the amount of such investments does not at any time exceed a prescribed percentage of a prescribed amount of the share capital and reserve funds of the controlling company calculated on a consolidated basis as prescribed.
| (2) | A controlling company providing loans and advances— |
| (a) | to undertakings other than banks, institutions which conduct business similar to the business of a bank in a country other than the Republic, controlling companies or companies of which the main object is the holding or development of property which is used or intended to be used mainly for the purpose of conducting the business of a bank; or |
| (b) | in relation to fixed property which is not used or intended to be used mainly for the purpose of conducting the business of a bank, |
shall manage its transactions in relation to such loans and advances in such a way that the amount of such loans and advances does not at any time exceed a prescribed percentage of a prescribed amount of the share capital and reserve funds of the controlling company and calculated on a consolidated basis as prescribed.
[Section 50 substituted by section 11 of Act No. 20 of 2007]