1. In the event that a Licensed Person designated as a systemically important Person pursuant to Article (52) of this Decree by Law breaches, or is likely in the near term to breach, its capital or liquidity requirements due to a rapid deterioration in its financial position, or if such Person or any of its subsidiaries faces financial distress, the Authority may take a series of measures to address the situation, in accordance with the regulations issued thereby, including the following: a. Requiring the Licensed Person to implement one or more measures within its recovery plan; b. Requiring the Licensed Person to provide additional financial resources to support its paid-up capital; c. Imposing additional liquidity requirements on the Licensed Person, commensurate with the risks associated with its activities; d. Requiring the Licensed Person to assess its position, determine corrective measures to address risks and deficiencies, and establish the necessary arrangements to adopt such measures; e. Requiring the Licensed Person to make changes to its business strategy; f. Requiring the Licensed Person to make changes to its legal or operational structure; g. Issuing a decision and taking necessary measures to merge the Licensed Person with another Licensed Person; h. Allowing any qualified entity to acquire the Licensed Person; i. Removing or replacing one or more members of the Board of Directors or Executive Management whose unfitness to perform their duties is established; j. Establishing a temporary committee to manage the Licensed Person. The committee may take such measures as it deems appropriate in accordance with the conditions and controls determined by the Board, including the authority to issue a decision to immediately suspend or halt all or part of the Licensed Person’s activities, and to take the consequent procedures arising therefrom, and the Licensed Person shall bear the fees of the committee as determined by the Authority; k. Directly managing the Licensed Person for the period determined by the Board, in which case the Authority shall replace the management of the licensed person in all powers including financial and administrative powers, and the powers of the Board of Directors and the General Assembly shall be immediately suspended until the end of the temporary management period; l. Appointing an independent supervisory member from outside the Authority to attend meetings of the Board of Directors of the Licensed Person and participate in discussions without voting rights, and the Board shall determine the duties and remuneration of such member; m. Requesting the competent authorities in the State to impose a temporary attachment over the Licensed Person and to seize its assets, properties, and rights of partners or shareholders; n. Issuing a decision to liquidate the Licensed Person or its investments, and prepare a plan for the liquidation or transfer of its assets, liabilities, related settlements and discharges, and to implement or supervise the implementation of the liquidation plan, or issue a decision for Settlement and Resolution, or submit a petition for bankruptcy declaration to the competent court in accordance with the legislation in force in the State; o. Restricting or suspending the Financial Activities of the licensed person or prohibiting it from entering into any contracts; p. Requiring the Licensed Person to maintain assets in the State equal to the net aggregate obligations of the Licensed Person arising from its operations in the State, or a specified percentage thereof; q. Requiring the Licensed Person to refrain from distributing any returns or profits to partners or shareholders; r. Suspending, revoking, or restructuring the license of the Licensed Person; s. Any other measures or procedures determined by a resolution of the Board. 2. Where a decision is issued to merge or liquidate a financial establishment incorporated outside the State or in a Financial Free Zone, having a branch licensed by the Authority, the same measures applied by the concerned authority in the jurisdiction of incorporation shall apply to the branch, unless otherwise agreed with the concerned authority. . In all cases, such measures shall not adversely affect financial stability or the rights of creditors in the State. 3. The Authority may coordinate with federal or local authorities or any other concerned authority prior to issuing any Board resolution pursuant to this Article, and may request competent judicial authorities to take precautionary, urgent, or other measures necessary to protect the funds and interests of investors or beneficiaries. 4. The Licensed Person shall be notified of the Authority’s decision relating to this Article by official notice within a period not exceeding twenty (20) working days from the date of issuance of the decision, which notice shall include: a. The content of the decision; b. The reasons for the decision; c. The effective date of the decision; d. The right of the Licensed Person to file a grievance against the decision within a period not exceeding thirty (30) working days from the date of notification by submitting a request to the Grievances Committee, in accordance with the provisions of this Decree by Law.
Interpretation and application must be checked against the official text and current version.