Central Bank and Credit Institutions (Resolution) Act 2011

61.

Application to set aside special management order.

61.— (1) The authorised credit institution, subsidiary or holding company in relation to which a special management order is made, or a member of that credit institution, subsidiary or holding company, may apply to the Court by motion on notice grounded upon affidavit, not later than 14 days after the publication, in accordance with subsection (1)(b) of section 59 , of the special management order, for the setting aside of the special management order.

(2) The Court shall give such priority to an application under subsection (1) as is necessary in the circumstances, and may give such directions as it considers appropriate in the circumstances—

( a) with regard to the hearing of the application, or

( b) with regard to a matter that arises during the period beginning with the special management order and ending with the order of the Court under this section.

(3) On an application under subsection (1), the Court shall set aside the special management order only if the Court is satisfied that there has been non-compliance with any of the requirements of section 56 or that the decision of the Bank was unreasonable or vitiated by an error of law.

(4) The Court may, instead of setting aside the special management order, make an order varying or amending that order in the manner it considers appropriate if the Court is satisfied that—

( a) there has been non-compliance with any of the requirements of section 56 or that the decision of the Bank was unreasonable or vitiated by an error of law,

( b) it would be appropriate to do so, having regard to any report referred to in section 58(2) , and

( c) the intervention conditions have been fulfilled in relation to the authorised credit institution concerned.

(5) An order under subsection (4) is, from the date of making it, effective to vary or amend the special management order without prejudice to the validity of anything previously done under the special management order.

(6) If the Court sets aside a special management order, the appointment of the special manager shall be taken to have been terminated, but—

( a) he or she remains entitled to be paid, out of the assets of that credit institution, his or her costs, expenses and remuneration, and

( b) the termination does not render invalid anything done by the special manager under the special management order.

(7) Where, instead of making an order under subsection (3) setting aside a special management order, or an order under subsection (4) varying or amending a special management order, the Court, on application under subsection (1) makes an order refusing to set aside a special management order, the special management order shall be taken to have been effective as if the application under this section had not been made.

(8) The Court, in considering the order it wishes to make under this section, may, where the applicant is a member of the credit institution, subsidiary or holding company the subject of the special management order, have regard to—

( a) the date on which the applicant became a member of that credit institution, subsidiary or holding company, or increased or decreased the number of shares that the applicant held in that credit institution, subsidiary or holding company, and

( b) the value of the shares acquired by or disposed of by the member—

(i) as at the date or dates on which the shares were acquired or disposed of, as the case may be, and

(ii) as at the date on which the special management order concerned was made.