Central Bank and Credit Institutions (Resolution) Act 2011

67.

Functions of special managers.

67.— (1) The special manager of an authorised credit institution, subsidiary or holding company shall take over the management of the business, or the relevant part of the business, of that credit institution, subsidiary or holding company, and—

( a) shall manage that business or part with a view to preserving or restoring the financial position of that credit institution, subsidiary or holding company,

( b) shall wind down that business or part with a view to liquidating its assets and paying off its liabilities and shrinking its business to facilitate its possible liquidation or acquisition, or

( c) having regard to any recovery plan of, and any resolution plan for, that credit institution, shall otherwise manage that business or part,

in accordance with the relevant special management order.

(2) Without prejudice to the generality of subsection (1) , the special manager of an authorised credit institution, subsidiary or holding company has the power to acquire and dispose of any asset or all the assets, and any liability or all the liabilities, of that credit institution, subsidiary or holding company.

(3) A reference in subsection (2) to disposing of an asset or a liability includes selling or otherwise transferring, and creating a security or equitable interest in, the asset or liability.

(4) The special manager of an authorised credit institution, subsidiary or holding company has, in relation to that credit institution, subsidiary or holding company, all powers necessary for or incidental to the special manager’s functions, including the sole authority over and direction of all officers and employees of that credit institution, subsidiary or holding company.

(5) The special manager of an authorised credit institution, subsidiary or holding company shall take such steps as he or she considers appropriate to remedy the matters that led to the making of the special management order, and for that purpose may, unless the special management order provides otherwise, appoint advisors to that credit institution, subsidiary or holding company.

(6) A special manager may, with the consent of the Bank, substitute his or her own decision for any decision that would otherwise be made by the members of the authorised credit institution, subsidiary or holding company concerned, and if he or she does so, the decision shall be taken to be the decision of the members.

(7) The appointment of a special manager of an authorised credit institution, subsidiary or holding company does not relieve that credit institution, subsidiary or holding company of any obligation to comply with—

( a) any applicable laws and regulatory requirements, or

( b) any direction given by the Bank to that credit institution, subsidiary or holding company under an enactment.

(8) The special manager of an authorised credit institution, subsidiary or holding company shall provide such reports and other information to the Bank as the Bank requests. The obligation under this subsection is in addition to any other obligation of that credit institution, subsidiary or holding company to provide information and make returns to the Bank.

(9) If a special management order authorises a special manager to take over only a part of the business of an authorised credit institution, subsidiary or holding company, a reference in this section to the business of an authorised credit institution, subsidiary or holding company shall be construed as a reference to that part of that business.