8.
| (1) Where any finance company registered under this Act has ceased to carry on finance business, a notice of such cessation shall be given to the Board forthwith upon such cessation, by such company. |
|
| (2) On receipt of notice of cessation under subsection (1), the Board shall -remove the name of the finance company from the register maintained under section 8 and cancel its licence, and may issue to such finance company directions for winding up or for divesting the finance business of the finance company and for the settlement in such manner as may be specified, of the deposit liabilities of the finance company, |
|
| (3) Where the Board has reasonable grounds to believe that any finance company registered under this Act is not carrying on finance business, the Board may sand to such company, a notice by registered post requiring such-company to furnish proof, within two weeks from the date of such notice, that it has not ceased to carry on finance-business. Where such finance company fails to furnish such proof within such period, the Board shall remove the name of such finance company from the register maintained under section 6 and shall cancel its licence. Where the registration of a finance company is so cancelled, the Board may issue such directions as it deems 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. |
|
| (4) Where a finance company fails to comply with directions issued under subsection (2) within one month of the issue of such directions, the Board may require the Director to file action for winding up the finance company and the provisions of section 13 shall apply to such winding up- |
|
|
Sri Lanka Consolidated Acts