8.5. Directions by AFSA
8.5.1. The AFSA may, in the interests of the AIFC, give a direction under this rule to a Protected Cell Company or any of its Directors.
8.5.2. Without limiting subrule 8.5.1, a direction under this rule may:
- (a) require the Protected Cell Company to cease the issue or redemption, or both the issue and redemption, of Shares or any class of Shares in the Protected Cell Company; or
- (b) require the Protected Cell Company, or any Director of the Company, to apply to the Court under the AIFC Insolvency Regulations or AIFC Insolvency Rules for any 1 or more of the following:
(i) make a Cell Receivership Order in relation to one or more Cells;
(ii) the appointment of a Receiver or Administrative Receiver for the Company;
(iii) the winding up of the Company; or
- (c) require that the affairs of the Protected Cell Company be wound up otherwise than by the Court.
8.5.3. If a consent given for a Protected Cell Company under rule 8.3 (Incorporation of, or conversion into, Protected Cell Company) is revoked, the revocation does not affect the operation of any direction that is then in force in relation to the Protected Cell Company under this rule; and a direction may be given in relation to a Protected Cell Company under this rule if a direction was in force under this rule in relation to the Protected Cell Company when the consent wasrevoked.
8.5.4. However, a direction may not be given under this rule in relation to a Protected Cell Company if a Cell Receivership Order, an order appointing a Receiver or Administrative Receiver, or a winding up order, has been made by the Court in relation to the Company.
8.5.5. If a direction is in force under this rule in relation to a Protected Cell Company, the AFSA may, on its own initiative or on the application of the Protected Cell Company, revoke or the direction if it considers it necessary or appropriate to do so in the interests of the AIFC.
8.5.6. A direction under this rule takes effect:
- (a) immediately, if the notice states that it is to take effect immediately; or
- (b) on the date specified in the notice.
8.5.7. If the AFSA proposes to give a direction to a Person under this rule, or gives a direction to a Person under this rule with immediate effect, it must give a Written notice about the direction to the Person. If the AFSA gives a notice to a Director of the Protected Cell Company, it must also give a Written notice about the direction to the Protected Cell Company.
8.5.8. A notice given to the Protected Cell Company or a Director of the Protected Cell Companymust:
- (a) give details of the direction; and
- (b) explain when the direction takes effect; and
- (c) state the AFSA’s reasons for giving the direction and for its decision about when the direction takes effect; and
- (d) tell the Protected Cell Company or Director that the Protected Cell Company or Director may make representations to the AFSA within the period specified in the notice.
8.5.9. If, having considered any representations made by the Protected Cell Company or Director within the period specified in the notice, the AFSA decides:
- (a) to give, or not to give, the direction in the way proposed; or
- (b) to give the direction in a way other than the way proposed; or
- (c) if the direction has been given to revoke, or not to revoke, the direction; the AFSA must, as soon as practicable after it makes the decision, give the Company or Director Written notice of the decision and must, if the Company or Director requests, give the Company or Director Written reasons for the decision.