Cap. 630 Art. 21Cancellation of activities.

(1) The Regulator may order the cancellation of the registration of a social enterprise organisation by the issue of a cancellation order, which shall come into effect thirty days from the date of notification of such order, to all or any one of the administrators, unless an application is filed within the period provided for in article 26 in which case such order shall only have effect if so determined and from the date established by the Court.

(2) A cancellation order may be issued if the social enterprise organisation:

(a) is not pursuing the purposes stated in the statute;

(b) is carrying out unlawful activities or is acting in contravention of the provisions of any law;

(c) is failing to comply with the provisions of its statute or of this Act or as may be prescribed or the administration thereof is being carried out to poor standards of corporate governance and continues to be so carried out for a period in excess of three months notwithstanding a written warning by the Regulator;

(d) is distributing profits directly or indirectly in excess of the twenty-five per cent permitted under this Act;

(e) appears to have continued operating after it has been formally dissolved;

(f) has not functioned for a period which exceeds twelve consecutive months;

(g) is not seeking to uphold and maintain the objectives of this Act;

(h) is using its certificate of recognition in an incorrect manner or has committed a forgery thereof; or

(i) has obtained registration on the basis of materially incorrect or incomplete information that would have otherwise resulted in a refusal had the correct or complete information been known to the Regulator.

(3) Prior to ordering the cancellation of the registration of a social enterprise organisation by the issue of a cancellation order, the Regulator shall grant the social enterprise organisation a period of time in which to regularise its position and conform with the provisions of this Act. If the social enterprise organisation does not do so within this stipulated time period, which may be extended by the Regulator at his discretion, the Regulator shall order the cancellation of the registration of the social enterprise organisation in accordance with sub-article (1).

(4) The Regulator may appoint any person to assist the social enterprise organisation to regularise its position.

(5) Until a cancellation order comes into effect in accordance with sub-article (1), the affairs of the social enterprise organisation shall continue to be administered by the administrators who shall only carry out acts of ordinary administration or, in case where judicial proceedings are pending, such acts as may be authorised by the Regulator or the Court.

(6) The cancellation order shall include all determinations under such terms and conditions as the Regulator or the Court, as the case may be, may consider appropriate in the circumstances and such order shall not however imply a restriction of the right of association of any persons involved in the organisation or of the right of said persons to continue to operate the organisation without the continuing benefits of registration under this Act.

(7) The Regulator shall publish, in one local newspaper or by means of a notice in the official website of the office of the Regulator, as the Regulator may consider appropriate in the circumstances of the case, any cancellation orders which have become final with a brief statement as to the effects of the order and such statement shall be re-published regularly for as long as the Regulator may consider necessary to ensure that the necessary public awareness has been achieved.

(8) The registration of a social enterprise organisation shall terminate ipso iure if the organisation is struck off the register applicable to its legal form by the Registrar.