Chapter 4
Securities Business
 
Division 9
Revocation of License and Dissolution of Securities Company
 
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Section 141.
 
 
If the Office finds that any securities company:
(1) does not appropriately prepare accounts or does not complete the preparation of accounts within a reasonable period of time;
(2) does any act or omits to do any act which is specified in the notification of the Office with the approval of the SEC;
the Office shall have the power to order the securities company to rectify such act or refrain from doing such act as the Office may deem appropriate within a specified period of time.
 
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Section 142.
 
 
Where there is evidence that the condition or operation of any securities company is such that damage may be caused to the public interest, the Office shall have the power to order such securities company to rectify such condition or operation within the period of time specified by the Office.
 
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Section 143.
 
 
In cases where the SEC finds that the condition or operation of any securities company is such that serious damage may be caused to the public interest, the SEC shall have the power to order such securities company to take measures to rectify its management or to take any other action within the period of time specified by the SEC. In this regard, the SEC may also specify any condition to be complied with by the securities company for the purpose of rectifying the condition of operation of the securities company.

In cases where any securities company fails or is unable to rectify its operation, the Minister shall have the power to revoke the license of such securities company upon the recommendation of the SEC.
 
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Section 144.
 
 
Where there is evidence that the condition or operation of any securities company is such that damage may be caused to the public interest, or where the directors, managers or persons responsible for the operation of any securities company fail to comply with the order of the Office under Section 141 or Section 142, the Office shall have the power to order such securities company to remove its directors, managers or persons responsible for its operation who have caused such events. In this regard, such securities company shall appoint other persons to replace the persons so removed within thirty days from the date of removal.
 
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Section 145.
 
 
Where any securities company fails to remove such persons or removes but fails to appoint other persons in their places within thirty days from the date of removal, the Office with the approval of the SEC shall have the power to:
(1) remove its directors, managers or persons responsible for the operation of the securities company whom the securities company fails to remove;
(2) appoint one or more persons to replace the persons so removed for a period of not longer than three years. The persons so appointed shall be entitled to remuneration to be paid from the assets of the securities company as specified by the SEC. During the period in which the persons so appointed hold office, shareholders of the securities company may not pass a resolution to revoke or change the orders of the Office.
For the purpose of this Section, the order of the Office issued under the first paragraph shall be deemed to be a resolution of a shareholders' meeting in accordance with the Civil and Commercial Code or the law relating to public limited companies, as the case may be.

The persons so removed shall no longer be involved in or operate, directly or indirectly, any affair of that securities company, and shall give assistance and provide facts to the persons so appointed.
 
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Section 146.
 
 
Where any securities company fails to comply with the order of the Office given in accordance with Section 144, the Office shall report the matter to the SEC. In such event, the Minister upon the recommendation of the SEC, shall have the power to revoke the license of the securities company.
 
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Section 147.
 
 
During any two year period, if any securities company does not undertake securities business of the type so licensed in the volume as specified in the SEC notification, the Minister shall have the power to revoke the license to operate all or any type of securities businesses so licensed upon the recommendation of the SEC.
 
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Section 148.
 
 
In cases where the Minister orders the revocation of all types of securities businesses in accordance with Section 143, Section 146 or Section 147, the securities company whose license has been revoked shall be dissolved.
The provisions of the first paragraph shall not apply to the financial institutions established in accordance with other laws which can undertake securities businesses.
 
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Section 149.
 
 
In revoking a license of a securities company, the Minister shall communicate the order in writing to the securities company and shall post such order in a prominent place at the office of the securities company and shall publish the order in the Government Gazette and in at least one local daily newspaper.
 
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Section 150.
 
 
Any securities company wishing to discontinue operating a securities business of the type so licensed shall seek an approval from the Minister through the SEC. In giving an approval, the Minister may specify any conditions.
 
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Section 151.
 
 
When any securities company has discontinued its operation or ceased operating securities businesses, the securities company shall complete the purchase, sale or exchange of securities, settlement and delivery of the outstanding securities within the period of time specified by the Office.
 
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Section 152.
 
 
Upon the dissolution of a securities company in accordance with Section 148, the securities company shall be liquidated and for this purpose the Office shall appoint a liquidator.
Liquidation shall be done in accordance with the provisions of the Civil and Commercial Code on the liquidation of a limited company or the law relating to public limited companies on liquidation of a public limited company, as the case may be, provided that the power and duty of the general meeting shall be the power and duty of the Office.
Expenses for liquidation of any securities company shall be paid from the assets of that securities company.