8. The principal Act is amended by inserting, immediately after section 21, the following sections:“Monthly statements of advances, loans and credit facilities |
21A.—(1) Every finance company shall send to the Authority, not later than 15 days after the last day of each month, a statement in the form determined by the Authority showing the particulars of all advances, loans and credit facilities granted by the finance company as at the end of that month to —(a) | any of the directors of the finance company; | (b) | any firm in which the finance company or any of its directors is a partner, manager or agent; | (c) | any individual or firm of whom or of which any of the directors of the finance company is a guarantor; | (d) | any corporation that is related to the finance company; | (e) | any of the finance company’s officers, employees or other persons receiving remuneration from the finance company (other than persons receiving remuneration in respect of their professional services); | (f) | any private or public company in which the finance company or any of its directors, officers, employees or other persons who receive remuneration from the finance company has an interest as a director, manager, agent or guarantor; or | (g) | any individual in whom, and any firm or company in which, any of the directors of the finance company has, whether directly or indirectly, such interest as is required to be declared under section 21B, other than those advances, loans and credit facilities, the particulars of which have been supplied pursuant to paragraphs (a) to (f). |
(2) Where it appears to the Authority, on examination of the particulars supplied by a finance company under subsection (1), that any advance, loan or credit facility has been or may be granted to the detriment of the interests of the depositors of the finance company (referred to in this subsection as the advance, loan or credit facility), the Authority may as it thinks fit by notice in writing —(a) | prohibit that finance company from granting any further advance, loan or credit facility to the borrowers which in the Authority’s opinion may be detrimental to the interest of the depositors; | (b) | impose restrictions on that finance company in relation to the grant of any advance, loan or credit facility; or | (c) | direct that finance company to secure repayment of any advance, loan or credit facility. |
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(3) In this section —(a) | “director” includes the wife, husband, mother, father, son or daughter of a director; and | (b) | whether a corporation is related to a finance company shall be construed in accordance with section 6 of the Companies Act (Cap. 50). |
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Disclosure of interest by directors |
21B.—(1) Subject to this section, every director of a finance company who is in any way, whether directly or indirectly, interested in an advance, loan or credit facility or proposed advance, loan or credit facility from that finance company, shall as soon as practicable declare the nature of his interest to the board of directors of that finance company and the secretary of the company shall cause the declaration to be circulated forthwith to all the directors.(2) Subsection (1) shall not apply in any case where the interest of the director of a finance company consists only of being a member or creditor of a company which is interested in an advance, loan or credit facility or proposed advance, loan or credit facility from that finance company if the interest of the director may properly be regarded as not being a material interest. |
(3) For the purposes of subsection (1), a general notice given to the board of directors of a finance company by a director to the effect that he is an officer or member of a specified company or a member of a specified firm and he is to be regarded as having an interest in any advance, loan or credit facility which may, after the date of the notice, be made to that company or firm shall be deemed to be a sufficient declaration of interest in relation to any advance, loan or credit facility so made if —(a) | it specifies the nature and extent of his interest in the particular company or firm; | (b) | his interest is not different in nature or greater in extent than the nature and extent so specified in the notice at the time any advance, loan or credit facility is made; and | (c) | it is given at a meeting of the directors or the director takes reasonable steps to ensure that it is brought up and read at the next meeting of the directors after it is given. |
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(4) Every director of a finance company who holds any office or possesses any property whereby, whether directly or indirectly, duties or interests might be created in conflict with his duties or interests as director shall declare at a meeting of the directors of that finance company the fact and the nature, character and extent of such conflict. |
(5) The declaration referred to in subsection (4) shall be made at the first meeting of the directors held —(a) | after he becomes a director of the finance company; or | (b) | if already a director, after he commences to hold the office or to possess the property. |
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(6) The secretary of a finance company shall cause to be brought up and read any declaration made under subsection (1) or (4) at the next meeting of the directors of that finance company after it is made, and shall record any declaration so made in the minutes of the meeting at which it was made or at which it was brought up and read. |
(7) Any director who contravenes subsection (1) or (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 3 years or to both.”. |
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