S.L. 386.15 Art. 25Expulsion of an incorporated cell. Cap. 370.

(1) A recognised incorporated cell company may, subject to approval by the competent authority and on the grounds listed in sub-regulation (2), expel an incorporated cell.

(2) The grounds referred to in sub-regulation (1) are:

(a) that the affairs of the incorporated cell are being or have been conducted in a manner which is unfairly prejudicial to its recognised incorporated cell company or any other incorporated cell of that company;

(b) that the incorporated cell is being or has been used for fraudulent purposes; or

(c) that to fail to do so would have a serious adverse effect upon the members of the incorporated cell or on the recognised incorporated cell company.

(3) In determining whether to approve an expulsion in terms of sub-regulation (1), the competent authority shall take into consideration any representations made to it by the recognised incorporated cell company, the liquidator (where applicable), the incorporated cell and any other party deemed to have a material interest in the business of the relevant incorporated cell, and may give such directions as it deems fit.

(4) The provisions of this regulation are without prejudice to any and all powers granted to the competent authority under the Investment Services Act.