Section 54

Where the Bank is satisfied that any person has contravened the provisions of section 45, 46, 47, 49 or 52 (in this section referred to as "the defaulting person") , it may make a preliminary order in writing imposing one or more of the following prohibitions or restrictions as may be applicable or appropriate in the circumstances of the contravention :

in respect of any shares which are the subject of the contravention—

prohibit the transfer of, or the carrying out of the agreement to transfer, such shares, or, in the case of unissued shares, prohibit the transfer of, or the carrying out of the agreement to transfer, the right to be issued with them;

in respect of a contravention of section 52, prohibit the exercise of any right under any security, or right to transfer any property constituting such security.

A preliminary order under subsection (1) shall be served on the defaulting person as soon as is practicable, and may be publicised in such manner as the Bank deems fit, if, in the opinion of the Bank, it needs to be publicised.

A preliminary order shall be binding on the defaulting person, on any person for the time being holding any shares to which such order applies, and on any other person specified in the order or to whom the order is directed.

Any person holding any shares to which a preliminary order applies shall within seven days after its service on the defaulting person, or such longer period as the Bank may allow, surrender such shares to the Bank.

No person shall be given an opportunity of being heard before the Bank makes a preliminary order under subsection (1) against him or which affects him in any manner.

Any defaulting person against whom a preliminary order has been made, or any other person prejudicially affected by such order, may, within fourteen days of the service of the order on the defaulting person, make representations in writing to the Bank applying for a revocation of the order on the ground that he had not contravened the provisions in relation to which the order has been made, or for a modification of the order on the ground that it would be just and proper to modify it for reasons to be specified in the representations.

The Bank may, after considering the representations made under subsection (6), either confirm the preliminary order, or revoke it, or vary it in such manner as it deems fit.

Where the Bank confirms a preliminary order, it may dispose of the shares surrendered to it under subsection (4) to such persons and to such extent as shall be consistent with the same being held lawfully by the purchaser under this Act.

The proceeds of the disposal of the shares under subsection (8) shall be paid into the High Court, and any person claiming to be beneficially entitled to the whole or any part of such proceeds may, within thirty days of such payment into the High Court, apply to a judge of the High Court in chambers for payment out of the same to him.

The Bank may give any instructions or directions to the directors or officers of the institution as may be necessary or requisite to give effect to any order of the Bank under this section, or as may be incidental, ancillary or consequential to such order.

Any transaction, including any agreement or arrangement in relation to any shares, or interest in shares; or security, which is in contravention of any preliminary order, or of any order confirmed under subsection (7), or of any instructions or directions given by the Bank under subsection (10), shall be void and of no effect.

The satisfaction of the Bank under subsection (1) that any of the provisions of this Act referred to therein have been contravened by any person may be arrived at regardless as to whether or not there is any prosecution of any person for such contravention.