Recapitalization by new shareholders

(1) On the basis of the report produced under section 90 and with the approval of the Central Bank, the statutory administrator may take action to increase the licensee’s capital through the issuance of shares to new shareholders in the following circumstances– (a) in the event that binding commitments are not submitted in an amount equal to the full amount of additional capital needed by existing shareholders under section 93; or (b) offering to shareholders, if– (i) the Central Bank determines that– (a) an expedited resolution of a licensee to maintain financial stability is necessary, or (b) the existing shareholders are no longer suitable to maintain a significant capital position in the licensee; or (ii) there has been a failure to comply timely with the requirement under section 37 in relation to additional 161 (2) To carry out a recapitalization by new shareholders, the statutory administrator shall– (a) if not already carried out under section 90, determine the extent of losses and prepare the licensee’s balance sheet covering the amount of such losses through the licensee’s profits, reserves and, if necessary, capital; (b) if necessary to reflect losses, reduce the par value of outstanding shares, notwithstanding any other provision of law; (c) determine the amount and type of funding required to bring the licensee into compliance with all capital requirements under this Act; (d) cause the licensee to issue additional shares in the amount necessary and carry out the sale of shares by the licensee and purchase of such shares by new investors.