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

Chapter II : Registration, Constitution, Functions, Management and Auditor of Co-operative Bank

Part 1 : Application to register, name, and fit and proper requirement

11. Suspension of registration or de-registration

 

(1) The Authority may, subject to subsection (4), de-register or, where appropriate, suspend the registration of a co-operative bank where the Authority is satisfied that the co-operative bank—
(a) has not commenced operating as a co-operative bank six months after the date of its registration as a co-operative bank;
(b) has ceased to operate;
(c) has not, for a continuous period of three months, met the criteria referred to in section 3(1) and is unlikely to meet the criteria in the future;
(d) obtained registration through fraudulent means;
(e) no longer meets the requirements for registration referred to in section 7;
(f) is unable to meet or maintain its prudential requirements referred to in section 20 or 23(2);
(g) has failed to comply with any condition imposed under this Act;
(h) has failed to comply with any directive issued under this Act; or
(i) is de-registered or wound-up under the Co-operatives Act.

 

(2) Where a co-operative bank has taken a decision at a general meeting to de-register as a co-operative bank, the Authority may on submission of such a decision together with a report from its auditor stating that such a co-operative bank has no debts other than deposits, de-register such a co-operative bank.

 

(3)
(a) Where the Authority suspends the registration of a co-operative bank under subsection (1), he or she may do so subject to any condition he or she may determine.
(b) The Authority may revoke any suspension under subsection (1) if he or she is satisfied that the co-operative bank has complied with all the conditions to which the suspension was made subject.

 

(4)
(a) The Authority may publish a notice of such de-registration or suspension in the Gazette.
(b) The de-registration of a co-operative bank takes effect on the date specified in the notice referred to in paragraph (a).
(c) Where a co-operative bank has appealed against the decision of the Authority referred to in subsection (1), the Authority must not publish the notice referred to in paragraph (a) until the appeal has been finalised.