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Mutual Banks Act, 1993 (Act No. 124 of 1993)

Chapter III : Authorization to Establish, and Registration and Cancellation of Registration of, Mutual Banks

11. Granting or refusal of application for authorization

 

(1) Subject to the provisions of subsection (2), the Registrar may, after considering all information, documents and reports furnished to him for the purposes of an application under section 10, grant or refuse the relevant application or grant the application subject to such conditions as he may determine, including conditions requiring the applicant to obtain an undertaking from a bank (hereinafter in this Act referred to as a guardian bank) to assist the applicant, with effect from its registration as a mutual bank under this Act and subject to such conditions as may be agreed upon by the applicant and such guardian bank, in respect of technological infrastructure, management advice and such other matters as may be prescribed.

 

(2) The Registrar shall not grant an application made under section 10 unless he is satisfied—
(a) that the establishment of the proposed mutual bank will not be detrimental to the public interest;
(b) that the founders will be able to successfully establish the proposed mutual bank;
(c) that sufficient financial means are or will be available to enable the proposed mutual bank to comply, in its capacity as a mutual bank, with the requirements of this Act;
(d) that the business of the proposed mutual bank will be conducted in a prudent manner;
(e) that every person who is to be a director or an executive officer of the proposed mutual bank is, as far as can reasonably be ascertained, a fit and proper person to hold the office of such director or executive officer;
(f) that every person who is to be an executive officer of the proposed mutual bank has sufficient experience of the management of the kind of business it is intended to conduct; and
(g) that the composition of the board of the proposed mutual bank will be appropriate having regard to the nature and scale of the business it is intended to conduct.

 

(3) When the Registrar grants or refuses an application made under section 10, he shall give written notice of that fact to the applicant concerned.