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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

23. Cancellation or suspension of registration by court

 

(1) The Registrar may by way of application on notice of motion apply to a competent court for an order cancelling or suspending the registration of a mutual bank if, in the opinion of the Registrar, there are grounds, other than the grounds referred to in section 21, justifying such cancellation or suspension.

 

(2) A competent court for the purposes of subsection (1) shall be any provincial or local division of the Supreme Court of South Africa within the area of jurisdiction of which the head office, referred to in section 40, of the mutual bank concerned is situated.

 

(3) The court entertaining an application made under subsection (1) shall enquire into and consider the matter and shall grant or refuse the application, and may make such order as to costs as it may deem fit.

 

(4) In addition to any other grounds that the court may consider sufficient to justify the granting of an order under subsection (1) cancelling or suspending the registration of a mutual bank, such an order may be granted if the institution concerned—
(a) or any of its directors or executive officers has been convicted of any offence in terms of this Act;
(b) does not satisfactorily carry on business as a mutual bank;
(c) has failed to comply with a requirement of this Act that is applicable to it in its capacity as a registered mutual bank;
(d) continues to employ an undesirable practice; or
(e) has in a material respect misrepresented the facilities which it offers to the general public or if, on any other ground advanced by the Registrar in the relevant application, the court is of the opinion that it is not in the public interest to allow the institution concerned to continue its activities as a mutual bank.