| (1) |
A bank shall not without the prior written approval of the Authority and in accordance with such conditions as the Authority may determine— |
| (a) |
establish or acquire a subsidiary in the manner prescribed within or outside the Republic or enter into an agreement having the effect that any company becomes its subsidiary within or outside the Republic; |
| (aA) |
invest in a joint venture within or outside the Republic if the investment, or the investment together with one or more investments already made by the bank in that joint venture, results in the bank being exposed to an amount representing more than five per cent of its capital and reserves: Provided that for as long as the bank is exposed to the aforementioned extent, such approval must be obtained whenever it seeks to make a further investment in that joint venture; |
| (b) |
open or acquire a branch office outside the Republic; |
| (c) |
acquire an interest in any undertaking having its registered office or principal place of business outside the Republic; |
[Section 52(1)(c) substituted by section 23 of Act No. 22 of 2013]
| (d) |
outside the Republic— |
| (i) |
create or acquire a trust of which the bank is a major beneficiary; or |
| (ii) |
establish or acquire any financial or other business undertaking under its direct or indirect control; |
| (e) |
establish or acquire any financial or other business undertaking outside the Republic; or |
| (f) |
create or acquire a division within or outside the Republic by means of an arrangement or agreement with any person having the effect that such person conducts his or her business through or by means of such a division. |
[Section 52(1) substituted by section 12(a) of Act No. 20 of 2007]
| (1A) |
Notwithstanding subsection (1), the Authority may, by notice published in the Register, determine circumstances and conditions in terms whereof an application contemplated in subsection (1) is not required. |
[Section 52(1A) substituted by section 290, item 9 in Schedule 4, of Act No. 9 of 2017]
| (2) |
To obtain the prior approval of the Authority as contemplated in subsection (1), there shall be lodged with the Authority a written application in which full particulars of the proposed action are furnished, including, in the case of a proposed establishment of a representative office outside the Republic as contemplated in paragraph (e) of the said subsection— |
| (a) |
the country in which the representative office is to be established; |
| (b) |
the name of the proposed chief representative officer, in that country, of the bank; and |
| (c) |
the address of the proposed representative office in that country. |
| (3) |
The Authority may require an applicant contemplated in subsection (2) to furnish him or her with such information, in addition to particulars furnished by the applicant in terms of that subsection, as the Authority may deem necessary. |
[Section 52(3) substituted by section 35(b) of Act No. 19 of 2003]
| (4) |
After the establishment in terms of this section of a representative office outside the Republic, the bank concerned shall in writing notify the Authority of— |
| (b) |
any change of the address of the representative office in question; or |
| (c) |
the closing down of the representative office, |
as soon as it occurs.
| (5) |
The provisions of subsection (1)(a), (c) and (d), and of subsections (2) and (3) in so far as they are relevant, shall mutatis mutandis apply in respect of any controlling company. |
| (6) |
For the purposes of this section and section 53 "joint venture" means a contractual arrangement between two or more persons, one or more of whom is a bank or a controlling company, in terms whereof the parties undertake an economic activity that is subject to their joint control. |
[Section 52(6) inserted by section 3(b) of Act No. 55 of 1996]
Housing Development Agency Act, 2008
