1. A Person shall not, whether solely or jointly with related parties, hold controlling interest, or increase controlling interest in any Licensed Financial Institution, nor exercise powers, which render him a de facto holder of controlling interest, at the discretion of the Board of Directors, unless he obtains Central Bank’s prior approval. 2. A Licensed Financial Institution shall not allow any Person to hold controlling interest therein, unless it obtains Central Bank’s prior approval. 3. In case it is established that a Person has violated the provision of items nos. (1) or (2) of this article, the Central Bank may impose one or more of the following measures: a. Serving a violation notice and giving the violating party a time limit for regularization, otherwise, the Central bank shall order to sell such controlling interest or the proportion that exceeds such controlling interest, and transferring such proceeds to the concerned violating party, in accordance with the mechanism determined by the Central Bank; b. Depriving the violating party of dividends or benefits, to the extent of the violation; c. Preventing the violating party from voting in the concerned institution’s general assembly or running for membership of its board of directors until regularization is done or implementation of the procedure determined the Central Bank; d. Suspending or revoking the violating party’s membership from the concerned institution’s board of directors, if applicable; e. Preventing the violating party from disposing of the proportion that exceeds the controlling stake without obtaining the prior written approval of the Central Bank; and f. Any other measure as deemed appropriate by the Board of Directors. 4. The Board of Directors shall issue regulations and directives pertaining to determining the standards for controlling interests and identifying related parties for the purposes of controlling interests in Licensed Financial Institutions, and restrictions to shares and situations of control.
Interpretation and application must be checked against the official text and current version.