Mutual Banks Act, 1993 (Act No. 124 of 1993)Chapter VII : Conversion of Mutual Banks64. Consideration of application |
| (1) | The Registrar shall not grant his approval for the conversion of a mutual bank into a bank if he is of the opinion— |
| (a) | that any of the documents mentioned in section 63(2) is inconsistent with a provision of the Banks Act, 1990 (Act No. 94 of 1990), or contains a provision that is undesirable; |
| (b) | that the basis or conditions on which it is contemplated to offer shares in the company to be established by the conversion or in any proposed controlling company, to persons referred to in paragraph of the definition of "conversion scheme" in section 61, or to such persons and to members of the public, are not reasonable and fair or may otherwise have the effect that a person will acquire an interest in the proposed company or in any proposed controlling company which is inconsistent with a provision of the Banks Act, 1990; or |
| (c) | that the application does not comply with a requirement of the Banks Act, 1990. |
| (2) |
| (a) | For the purposes of considering the basis and conditions on which it is contemplated to offer shares in the proposed company or in any proposed controlling company to persons referred to in paragraph (c) of the definition of "conversion scheme" in section 61, or to such persons and to members of the public, the Registrar may, after consultation with the mutual bank, designate a person to investigate and advise him, independently of the mutual bank, on the reasonableness and fairness of the proposed basis and conditions. |
| (b) | The costs of an investigation in terms of paragraph (a) shall be paid by the mutual bank. |
| (3) | The Registrar shall not refuse any application on the ground of subsection (1)(a) or (b) without having afforded the mutual bank a reasonable opportunity to adjust the relevant document in accordance with his requirements. |