Part I Regulation of Deposit-Taking Business
Objections to controllers
26 Restrictions on and sale of shares.
1
The powers conferred by this section shall be exercisable where a person—
a
has contravened section 21 above by becoming a shareholder controller of any description after being served with a notice of objection to his becoming a controller of that description; or
b
having become a shareholder controller of any description in contravention of that section continues to be one after such a notice has been served on him; or
c
continues to be a shareholder controller of any description after being served under section 24 above with a notice of objection to his being a controller of that description.
2
The F2Authority may by notice in writing served on the person concerned direct that any specified shares to which this section applies shall, until further notice, be subject to one or more of the following restrictions—
a
any transfer of, or agreement to transfer, those shares or, in the case of unissued shares, any transfer of or agreement to transfer the right to be issued with them shall be void;
b
no voting rights shall be exercisable in respect of the shares;
c
no further shares shall be issued in right of them or in pursuance of any offer made to their holder;
d
except in a liquidation, no payment shall be made of any sums due from the institution on the shares, whether in respect of capital or otherwise.
3
The court may, on the application of the F2Authority, order the sale of any specified shares to which this section applies and, if they are for the time being subject to any restrictions under subsection (2) above, that they shall cease to be subject to those restrictions.
4
No order shall be made under subsection (3) above in a case where the notice of objection was served under section 22 or 24 above—
a
until the end of the period within which an appeal can be brought against the notice of objection; and
b
if such an appeal is brought, until it has been determined or withdrawn.
5
Where an order has been made under subsection (3) above the court may, on the application of the F2Authority, make such further order relating to the sale or transfer of the shares as it thinks fit.
6
Where shares are sold in pursuance of an order under this section the proceeds of sale, less the costs of the sale, shall be paid into court for the benefit of the persons beneficially interested in them; and any such person may apply to the court for the whole or part of the proceeds to be paid to him.
7
This section applies—
a
to all the shares in the institution of which the person in question is a controller of the relevant description which are held by him or any associate of his and were not so held immediately before he became such a controller of the institution; and
b
where the person in question became a controller of the relevant description of an institution as a result of the acquisition by him or any associate of his of shares in another company, to all the shares in that company which are held by him or any associate of his and were not so held before he became such a controller of that institution.
8
A copy of the notice served on the person concerned under subsection (2) above shall be served on the institution or company to whose shares it relates and, if it relates to shares held by an associate of that person, on that associate.
9
The jurisdiction conferred by this section shall be exercisable by the High Court and the Court of Session.