Powers and duties of the statutory administrator

(1) For the purposes of section 89(2), the statutory administrator shall have full and exclusive powers to manage and control the affairs of the licensee. The statutory administrator may take such action as necessary or appropriate to– (a) carry on the business of the licensee; (b) preserve and safeguard the assets and property of the licensee; and (c) implement a plan of action with respect to the licensee that has been approved by the Central Bank, and where required, the Supreme Court. 155 (2) The statutory administrator shall act in accordance with the regulations, instructions and practice directions made pursuant to this Act at any time during the statutory administration and shall be accountable only to the Central Bank for the performance of duties and the exercise of powers as (3) The statutory administrator may delegate any of its powers or duties to other persons, in accordance with the instructions issued by the Central Bank. (4) The statutory administrator shall prepare and deliver to the Central Bank the following reports– (a) within thirty days after its appointment, a report setting out an inventory of the assets and liabilities of the licensee. Such report shall itemize the assets of the licensee according to their different risk profiles and classify the non-performing loans; (b) within fifteen days after the appointment, a report on– (i) the financial condition and future prospects of the licensee subject to statutory administration, which shall include a new balance sheet and an assessment of the amount of assets likely to be realised in a liquidation of the licensee; and (ii) the proposed plan of action which may involve– (a) a recommendation to return the licensee to compliance with the law by carrying out a plan of corrective action that may include a capital increase; (b) an order for the compulsory winding-up of the licensee if there is no reasonable prospect for the return of the licensee to soundness through reorganization or otherwise; or (iii) any other course of action designed to minimize disruption to depositors and preserve the stability of the banking sector. (5) The statutory administrator shall promptly provide any additional report or information requested by the Central Bank. (6) The Central Bank may– (a) approve the report or additional report mentioned in sub-section (4) or (5) without modification; (b) approve the report or additional report mentioned in sub-section (4) or (5) subject to such conditions as it deems necessary; or (c) refuse to approve the report. (7) The statutory administrator shall suspend the payment of any dividends or other form of capital distribution to shareholders, as well as any payment to directors other than for salaries or services provided to the licensee upon request of the 157 (8) The statutory administrator may employ, at the expense of the licensee in statutory administration, independent attorneys, auditors and consultants to assist the statutory administrator, on such terms as the Central Bank may approve. (9) If the statutory administrator has reasonable cause to believe that shareholders, directors, officers, attorneys, auditors or other professionals have engaged or are engaging in criminal activities punishable by imprisonment of one year or more or in any matter involving fraud, it shall immediately notify the Central Bank and shall pursue any civil action seeking damages, restitution and such other relief as the statutory administrator shall deem fit. (10) All costs and expenses incurred in the civil action under sub-section (9) shall be borne by and charged to the licensee. (11) Not later than sixty days after the statutory administrator has been appointed by the Central Bank, the Central Bank shall apply to the Supreme Court by Fixed Date Claim Form for an order confirming the vesting in the statutory administration of full and exclusive powers to manage and control the affairs of the licensee as set out in sub-sections (1) through (10).