41.
| (1) Where the Board is satisfied that any finance company has
| | (a) failed to commence business within nine months of the issue of the licence; or | | |
| | (b) failed to pay up any debts incurred by it, on such debts becoming due; or | | |
| | (c) where a petition or action for relief has been Bled against it, had appointed in respect of it, under any bankruptcy law or any other law which provides for relief of debtors or which relates to debtors, a custodian or receiver; or | | |
| | (d) ceased to carry on finance business; or | | |
| | (e) continuously violates or contravenes the provisions of the Act or any directions issued thereunder; or | | |
| | (f) fails to pay the annual licence fee, | | |
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| (2) A financial company may tender objections in writing to the Board against the notice of cancellation under subsection (1), within thirty days of the date of receipt of such notice, giving reasons why the licence issued to it under section 7 should not be so cancelled. |
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| (3) After the expiration of sixty days from the date of notification of the cancellation and after considering the objections tendered to the Board under subsection (2), the Board may withdraw such notice or cancel the licence issued to the finance company, and shall notify the finance company accordingly, |
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| (4) A cancellation of a licence under subsection (3), shall take effect
| | (a) where no application is made to the Supreme Court against the cancellation, after the period for preferring such application has expired; or | | |
| | (b) where an application is made to the Supreme Court, after the cancellation is upheld by the Supreme Court, and notification of such cancellation shall be published in the Gazette. | | |
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| (5) Where the licence of a finance company is so cancelled the Board shall remove the name of the finance company from the register maintained under section 6 and may issue such directions as it considers necessary, including directions for winding up or require the Director to apply for winding up of the company in which event the provisions of section 18 shall apply. |
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| (6) Where the finance company fails to comply with the provisions of subsection (5) within thirty days of the issue, the Board may require the Director to file action for the winding up of the finance company, and the provisions of section 18 shall apply to such winding up. |
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Sri Lanka Consolidated Acts