Co-operative Banks Act, 2007 (Act No. 40 of 2007)

Chapter VIIA : Co-Operative Financial Institutions

40D. Suspension of registration or de-registration
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Authority may, subject to subsection (4), de-register or, where appropriate, suspend the registration of a co-operative financial institution where the Authority is satisfied that the co-operative financial institution—

(a) has not commenced operating as a co-operative financial institution six months after the date of its registration as a co-operative financial institution;
(b) has ceased to operate;
(c) obtained registration through fraudulent means;
(d) no longer meets the requirements for registration referred to in section 40B;
(e) is unable to meet or maintain its prudential requirements referred to in section 40B;
(f) has failed to comply with any condition imposed under this Act;
(g) has failed to comply with any directive issued under this Act; or
(h) is de-registered or wound-up under the Co-operatives Act.

 

(2) Where a co-operative financial institution has requested its de-registration, the Authority may on submission of such a request, along with any other prescribed or requested information, deregister the co-operative financial institution.
(3)
(a) Where the Authority suspends the registration of a co-operative bank under subsection (1), the Authority may do so subject to any condition that the Authority may determine.
(b) The Authority may revoke any suspension under subsection (1) if the Authority is satisfied that the co-operative financial institution has complied with all the conditions to which the suspension was made subject.
(4)
(a) The Authority must publish a notice of such de-registration or suspension in the Register.
(b) The de-registration of a co-operative financial institution takes effect on the date specified in the notice referred to in paragraph (a).
(c) Where a co-operative financial institution has applied for reconsideration of the decision of the Authority referred to in subsection (1), the Authority must not publish the notice referred to in paragraph (a) until the application for reconsideration of the decision has been finalised.

 

[Section 40D inserted by section 290, item 7 in Schedule 4, of Act No. 9 of 2017 - effective 1 October 2018 (paragraph (h) of Notice 169 of 2018)]