sec.116Notice of suspected insolvency because of direction or notification

### sec.116 Notice of suspected insolvency because of direction or notification If— a GOC’s board is given a direction or notification by the shareholding Ministers; and the board suspects that the GOC, or a subsidiary of the GOC, will or may become insolvent; and in the board’s opinion, the cause or a substantial cause of the suspected insolvency would be compliance with the direction or notification; the board must immediately give written notice to the shareholding Ministers and the auditor-general of— the suspicion; and its reasons for the opinion. The notice must state that it is given under this section. The giving of the notice operates to suspend the direction or notification until— the shareholding Ministers advise the board, in writing, that they are not satisfied— that the board’s suspicion mentioned in subsection (1) (b) is well-founded; or that the board’s opinion mentioned in subsection (1) (c) is justified; or the direction or notification is revoked. If the shareholding Ministers are satisfied that the board’s suspicion is well-founded, the shareholding Ministers must immediately— if they are also satisfied that the board’s opinion is justified—revoke the direction or notification; and in any case—give the board the written directions that the shareholding Ministers consider necessary or desirable, including any directions necessary or desirable to ensure— that the GOC or subsidiary does not incur further debts; or that the GOC or subsidiary will be able to pay all its debts as and when they become due. Without limiting subsection (4) , a direction under this section may require the GOC or any of its subsidiaries to cease or limit particular activities. The board must ensure that a direction under this section is complied with in relation to the GOC and must, as far as practicable, ensure that it is complied with in relation to its subsidiaries. The shareholding Ministers must cause a copy of the direction to be published in the gazette within 21 days after it is given. This section is in addition to, and does not limit, another provision of this Act or another law. (sec.116-ssec.1) If— a GOC’s board is given a direction or notification by the shareholding Ministers; and the board suspects that the GOC, or a subsidiary of the GOC, will or may become insolvent; and in the board’s opinion, the cause or a substantial cause of the suspected insolvency would be compliance with the direction or notification; the board must immediately give written notice to the shareholding Ministers and the auditor-general of— the suspicion; and its reasons for the opinion. (sec.116-ssec.2) The notice must state that it is given under this section. (sec.116-ssec.3) The giving of the notice operates to suspend the direction or notification until— the shareholding Ministers advise the board, in writing, that they are not satisfied— that the board’s suspicion mentioned in subsection (1) (b) is well-founded; or that the board’s opinion mentioned in subsection (1) (c) is justified; or the direction or notification is revoked. (sec.116-ssec.4) If the shareholding Ministers are satisfied that the board’s suspicion is well-founded, the shareholding Ministers must immediately— if they are also satisfied that the board’s opinion is justified—revoke the direction or notification; and in any case—give the board the written directions that the shareholding Ministers consider necessary or desirable, including any directions necessary or desirable to ensure— that the GOC or subsidiary does not incur further debts; or that the GOC or subsidiary will be able to pay all its debts as and when they become due. (sec.116-ssec.5) Without limiting subsection (4) , a direction under this section may require the GOC or any of its subsidiaries to cease or limit particular activities. (sec.116-ssec.6) The board must ensure that a direction under this section is complied with in relation to the GOC and must, as far as practicable, ensure that it is complied with in relation to its subsidiaries. (sec.116-ssec.7) The shareholding Ministers must cause a copy of the direction to be published in the gazette within 21 days after it is given. (sec.116-ssec.8) This section is in addition to, and does not limit, another provision of this Act or another law. - (a) a GOC’s board is given a direction or notification by the shareholding Ministers; and - (b) the board suspects that the GOC, or a subsidiary of the GOC, will or may become insolvent; and - (c) in the board’s opinion, the cause or a substantial cause of the suspected insolvency would be compliance with the direction or notification; - (d) the suspicion; and - (e) its reasons for the opinion. - (a) the shareholding Ministers advise the board, in writing, that they are not satisfied— (i) that the board’s suspicion mentioned in subsection (1) (b) is well-founded; or (ii) that the board’s opinion mentioned in subsection (1) (c) is justified; or - (i) that the board’s suspicion mentioned in subsection (1) (b) is well-founded; or - (ii) that the board’s opinion mentioned in subsection (1) (c) is justified; or - (b) the direction or notification is revoked. - (i) that the board’s suspicion mentioned in subsection (1) (b) is well-founded; or - (ii) that the board’s opinion mentioned in subsection (1) (c) is justified; or - (a) if they are also satisfied that the board’s opinion is justified—revoke the direction or notification; and - (b) in any case—give the board the written directions that the shareholding Ministers consider necessary or desirable, including any directions necessary or desirable to ensure— (i) that the GOC or subsidiary does not incur further debts; or (ii) that the GOC or subsidiary will be able to pay all its debts as and when they become due. - (i) that the GOC or subsidiary does not incur further debts; or - (ii) that the GOC or subsidiary will be able to pay all its debts as and when they become due. - (i) that the GOC or subsidiary does not incur further debts; or - (ii) that the GOC or subsidiary will be able to pay all its debts as and when they become due.