11A.—(1) A licensee shall ensure that at any time —
(a)
where the licensee is a sole proprietor or partnership, the firm’s capital is not less than $100,000 and its net worth is not less than that amount; or
(b)
where the licensee is a company, its issued and paid-up capital is not less than $100,000 and its net worth is not less than that amount.
(2) Where a licensee is unable to comply with paragraph (1), the Board may by notice in writing require the licensee to furnish, within 28 days of the notice, a banker’s guarantee of such minimum value as may be determined by the Board.
(3) A banker’s guarantee furnished under paragraph (2) must be made in favour of the Board and must be valid during the currency of the licence.
(4) A company shall not reduce its paid-up capital during the currency of its licence without the approval of the Board.
(5) Any licensee who fails to comply with the requirements of a notice under paragraph (2) shall be guilty of an offence.
(6) In this regulation —
“net worth” means —
(a)
in the case of a sole proprietor or partnership, the capital of the firm deduction having been made in respect of any debit balance appearing in the profit and loss account of the firm;
(b)
in the case of a company, the paid-up capital and revenue reserves of that company deduction having been made in respect of any debit balance appearing in the profit and loss account of the company;
“revenue reserves”, in relation to a company, means the undistributed profits (or accumulated losses) resulting from the company’s operation which appear in the accounts of the company which are lodged with the Registry of Companies together with the annual return of the company under section 197(1) of the Companies Act [Cap. 50] but does not include any reserves which are of a capital expenditure nature.