24. Section 31D of the principal enactment is hereby amended as follows :
| (1) by the repeal of subsections (1), (2), (3) and (4) of that section, and the substitution therefor of the following subsections : |
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| (1) The Commission shall can eel or suspend the licence granted to a managing company in respect of a particular unit trust, where the Commission is satisfied that |
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| (a) the managing company of such unit trust has acted in breach of any provision of this Act or any rules or regulations made thereunder; |
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| (b) the managing company of such unit trust has ceased to be of good financial standing; |
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| (c) the managing company of such unit trust is guilty of malpractice or irregularity in the management of its affairs; |
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| (d) the managing company of such unit trust has been dismissed by the trustee of a unit trust; or |
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| (e) the approval granted to the trustee of such unit trust has been withdrawn by the Commission under section 31B and anew trustee has not been approved by the Commission. |
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| (2) Before the cancellation of a licence granted to a managing company in respect or a particular unit trust in terms of the preceding subsection, such managing company shall be given an opportunity to show cause as to why such licence should not be cancelled, |
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| (3) Where the licence granted to a managing company in respect of a particular unit trust is cancelled, it shall be the duty of such managing company to forthwith surrender its licence to the Commission, |
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| (4) Where the Commission is satisfied that the managing company in respect of a particular unit trust has contravened the provisions of paragraph (a), (b) or (c) of subsection (1) and that such contravention is not considered by the Commission as being of a serious nature, it may, in lieu of acting under subsection (1), direct such managing company to take whatever action the Commission may consider appropriate to |
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| (a) rectify or set right the condition resulting from such contravention; or |
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| (b) to comply with the provisions of this Act or any rule or regulation made under this Act or to desist from continuing such contravention. '. |
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| (2) in subsection (5) of that section by the substitution for the words "trustee or managing company" wherever those words occur in that subsection. of the words" managing company" ; |
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| (3) by the substitution for the marginal note to that section, of the following marginal note : |
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Sri Lanka Consolidated Acts