Section 30
Insolvency of manager etc.
Ill Where the manager, administrator, trustee or custodian of a registered fund (in this section referred to as a "relevant person") has reason to believe 192
fa} that he is or is likely to become unable to meet his obligations, as they fall due; or
(b} that he is otherwise insolvent, he shall notify the Authority in writing of his belief.
(2)
Where-
(a)
the Authority receives a notification under subsection (1);
{b)
a relevant person becomes unable to meet his obligations as they fall due; or
{c)
the Authority is of opinion that-
(i)
a relevant person is carrying on, is attempting to carry on or is voluntarily winding-up, hi&-
business in a manner prejudicial to the interests of hiscreditors or the participants in a registered fund or the fund's creditors;
(ii)
that a relevant person is, or is likely to become, unable to meet his obligations as they fall due; or
(iii)
as regards a relevant person's licence or permission under this Order, there has been a failure to comply with, or a contravention of, a condition attached to the licence or permission, the Authority shall give a direction under this section as regards that person.
(3)
A direction given under this section shall remain in force until it is withdrawn by the Authority.
(4)
Where a direction under this section is in force, an application may be made to the Authority to withdraw a direction but the Authority may not withdraw the direction unless the Authority is satisfied that, as regards the person to whom the direction applies -
{a)
the circumstances which caused the direction to be given no longer exist; and
(b)
no other circumstances exist which would require the Authority to give such a direction as regards that person.
(5)
If a direction given under this section is in force, then, subject to subsection (6), the Authority may, as regards the person to whom the direction 193
BRUNEI DARUSSALAM GOVERNMENT GAZETTE relates, exercise such one or more of the following powers as may appear to him to be necessary -
(a)
by notice in writing require that, until the notice is withdrawn, in so far as that person takes any action or does any act or thing in relation to the management or administration of the affairs, business or property of any registered fund, he shall do so only after the advice of an adviser appointed for the purposes of this paragraph by the Authority and named in the notice has been sought and obtained;
(b)
by notice in writing require that, until the notice is withdrawn, in so far as that person takes any action or does any act or thing referred to in paragraph (a), he shall do so only under the supervision of a supervisor appointed for the purposes of this paragraph by the Authority and named in the notice;
(c)
by notice in writing remove forthwith that person from his office as manager, administrator, trustee or custodian of the registered fund and appoint another person to that office instead;
(d)
attach conditions, or where appropriate, additional conditions to that person's licence or permission under this Order or revoke or vary conditions already so attached;
(e)
subject to the First Schedule, revoke that licence or permission, and the person appointed under paragraph (a) or (b) may be an individual, a partnership or a body corporate.
(6)
A notice shall not be given under subsection (S)(a) or (b) as regards a person in respect of whom the High Court has made a winding-up order; and where a notice given under 'either of those paragraphs relates to a registered fund which is incorporated or otherwise established outside Brunei Darussalam the notice shall only apply to
(a)
actions, acts or other things which relate to the affairs and business of the fund which are carried on, managed or administered in or from Brunei Darussalam; and
(b)
so much of the fund's property as is-
(i)
located in, managed or administered from Brunei Darussalam;
or
(ii}
an asset of the fund's principal or other place of business in
Brunei Darussalam.
194
(7}
The remuneration and reasonable expenses of a person appointed pursuant to subsection {4)(a) or (b) shall be paid by the registered fund to which the notice concerned relates.
{8}
References in this Order to a manager or to an administrator include, except where the context otherwise requires, references to a person appointed pursuant to subsection (5)(a).
(9)
Any person who fails to comply with a notice or direction under this section shall be guilty of an offence and liable on conviction to a fine not exceeding
$200,000, imprisonment for a term not exceeding 2 years or both.
{10)
Nothing in any deed, agreement, articles or memorandum of association or other document shall operate to prevent the Authority exercising any power under subsection (2).
Winding-up order etc.
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