Examination of applications

(1) On receipt of an application from an eligible company for a licence under this Act, the Central Bank may cause such investigation to be made of the applicant company or proposed company, its financial standing, and of any associates or affiliates of the applicant company or proposed company, as the Central Bank considers necessary to satisfy itself that the applicant meets the criteria of licensing and that it will conduct its business in a sound and prudent manner. (2) Without prejudice to the generality of sub-section (1) of this section, the Central Bank may require an examination or investigation to be made of any or all of the following– (a) the financial status and history of the applicant company and any of its directors, associates, principal shareholders or affiliates; (b) the character and experience of the directors and managers thereof; (c) the adequacy of its capital for the purpose of the business it intends to carry; (d) the earning prospects and viability of the proposed offshore bank; (e) the source of funds for capitalisation; (f) any other matter relating to the fitness and propriety of the applicant company, its directors, beneficial owners or management; (g) the adequacy of the applicant company’s liquidity; (h) the adequacy of the applicant company’s provision for non-performing and doubtful assets; and (i) the adequacy of the applicant company’s accounting methods and records. 17 (3) For the purposes of this section, “associate”, when used to indicate a relationship with any person, means– (a) a company of which the person so referred to beneficially owns or controls, directly or indirectly, shares, or securities convertible into shares, carrying more than twenty-five per centum of the voting rights; (b) a partner of the person so referred to, acting on behalf of the partnership; (c) a trust or estate in which the person so referred to has a substantial beneficial interest or in respect of which he serves as a trustee or in a similar capacity. (4) For the purposes of this section– (a) one company is affiliated with another company if that company is the subsidiary of the other or both are subsidiaries of the same holding company or each of them is controlled by the same person; (b) if two companies are affiliated with the same company at the same time, they are affiliated with each other at that time; (c) a company is the holding company of another if that other company is a subsidiary of the first-mentioned company; (d) a company is a subsidiary of another company if it is controlled by that other company. (5) Repealed. 18