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(4) The examination so taken shall be returned or reported to the administrator in such
manner as the administrator directs.
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Forfeiture or vesting in State of rights of, or disposal of shares held by,
specified persons
(1) The administrator shall cancel or nullify any share, right or interest in or claim upon a
troubled financial institution purportedly held by a specified person which was obtained by or
resulted from any fraud committed by the specified person.
(2) Any share, right or interest in or claim upon a troubled financial institution held by a
specified person that is not a share, right or interest in or claim upon the institution referred to
in subsection (1) and which properly vests in a specified person shall, with effect from the
date he or she becomes a specified person in terms of section 14(8) and subject to subsection
(4), vest in the State, which, in consideration therefor, shall apply the same by way of set-off
towards discharging the specified person’s liability for any or all of the debts and liabilities of
the institution.
(3) The administrator may, in accordance with a scheme of resolution—
(a) consolidate or redivide any shares referred to in subsection (2) into any number of
shares of any denomination equivalent to the true or fair value of the shares
previously held by the culpable person;
(b) convert any right, interest or claim referred to in subsection (2) into shares equal in
value to the true or fair value of the right, claim or interest previously held by the
specified person;
and the shares resulting from the exercise of the administrator’s powers under paragraph (a)
or (b) shall be issued to the State.
(4) If, after the setting off of any shares in terms of subsection (2) that are held by, and
properly vest in, a specified person, any shares remain to him or her, the administrator may,
by written notice to the specified person—
(a) direct the specified to dispose of his or her shares to another person (who must be
qualified in terms of the Banking Act to hold such shares) within such reasonable
period as the administrator shall specify in the notice; and
(b) suspend (notwithstanding anything contained in the memorandum and articles of the
financial institution) all voting rights attaching to the shares held by the specified
person until such time as they are disposed of under paragraph (a), and until they are
so disposed of such shares shall be deemed not to form part of the share capital of
the financial institution.
(5) If a specified person to whom a notice has been issued in terms of subsection (4) is
unable to dispose of his or her shares at a reasonable price to any other person, he or she may
offer them for purchase by the administrator, who may—
(a) purchase the shares on behalf of the Reserve Bank in right of the State; or
(b) purchase the shares on behalf of the financial institution without the authority of a
general meeting referred to in section 79 of the Companies Act.
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