36Prescribed interests in business entities that cease to be eligible

36 Prescribed interests in business entities that cease to be eligible

(1) Where the certification of a business entity as an eligible business entity in relation to a licensee is cancelled by the Board under section 30 or expires, the Board may: (a) approve the continued holding by the licensee of any or all prescribed interests held by the licensee in the business entity at the time of the cancellation or expiry, as the case may be; and (b) approve the acquisition by the licensee of additional prescribed interests in the business entity if: (i) the Board is satisfied that it is desirable for the licensee to acquire those additional interests in order to protect the prescribed interests already held by it in the business entity and that no other finance is available on reasonable terms to the business entity; and (ii) an application for the Board’s approval of the acquisition is lodged with the Board at least 28 days before the acquisition. (2) Where the Board approves under subsection (1) the continued holding, or the acquisition, of prescribed interests in a business entity by a licensee, the Board shall specify in the approval a date by which all prescribed interests held by the licensee in the business entity must be disposed of. (2A) The Board may, on the request of the licensee made before the expiration of the date specified by the Board in an approval, vary the approval by specifying a later date in place of the date originally specified and the approval shall have effect accordingly. (2B) Where, under subsection (2) as in force immediately before the commencement of this subsection, the Board has approved the continued holding, or the acquisition, of prescribed interests in a business entity by a licensee without specifying a date by which all prescribed interests held by the licensee in the business entity must be disposed of, the Board shall, as soon as practicable after the commencement of this subsection, by notice in writing served on the licensee, specify such a date and that date shall be deemed to have been specified by the Board when that approval was given. (3) For the purposes of this Part, where a licensee continues to hold, or acquires, prescribed interests in a business entity with the approval of the Board under subsection (1), the business entity shall be deemed to be an eligible business entity in relation to the licensee until the date specified by the Board under subsection (2).