s.41Powers of Authority in respect of credit unions
41
Section 41Part 5 — Additional Provisions Relating to Credit Unions

Powers of Authority in respect of credit unions

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Whenever the Authority is of the opinion that a credit union — (a) is or appears likely to become unable to meet its obligations as they fall due; (aa) has a director or senior officer who is not a fit and proper person; (b) is carrying on business in a manner detrimental to the public interest or the interest of its members or creditors; or (c) has contravened this Part, the Authority may forthwith do any of the following —
require the substitution of any director or officer of the credit union;
at the expense of the credit union, appoint a person to advise the union on the proper conduct of its affairs and to report to the Authority thereon within three months of the date of that person’s appointment;
at the expense of the credit union, appoint a person to assume control of the union’s affairs who shall, with any necessary changes, have all the powers of a person appointed, under section 18 of the Bankruptcy Law (1997 Revision), as a receiver or manager of a business; and
require such action to be taken by the credit union as the Authority considers necessary.
A credit union may, within seven days of the Authority’s decision, apply to the Authority for a reconsideration of its decision.
A person appointed under paragraph (c)(ii) or (iii) of subsection (1) or whose appointment has been extended under paragraph (b) of subsection (4) shall, from time to time at that person’s discretion and in any case within three months of the date of that person’s appointment or of the extension of that person’s appointment (as the case may be), prepare and furnish a report to the Authority of the affairs of the credit union and of that person’s recommendations thereon.
On receipt of a report under subsection (3), the Authority may — (a) revoke the appointment of the person appointed under paragraph (c)(ii) or (iii) of subsection (1); (b) extend the period of that person’s appointment; or (c) subject to such conditions as the Authority may impose, allow the credit union to reorganise its affairs in a manner approved by the Authority.

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