• CSD-6.4 CSD-6.4 Power of CBB to Remove Officers

    • CSD-6.4.1

      The CBB may, if it thinks it necessary in the interests of the public, or a section of the public, or for the protection of investors, by notice in writing direct that licensed clearing house or licensed central depository to remove the officer from his office or employment, where the CBB is satisfied that an officer of a licensed clearing house or licensed central depository:

      (a) Has wilfully contravened or wilfully caused that licensed clearing house or licensed central depository to contravene this Module or its business rules;
      (b) Has, without reasonable excuse, failed to ensure compliance with this Module or the business rules of that licensed clearing house or licensed central depository, by that licensed clearing house or licensed central depository, or a member of that licensed clearing house or licensed central depository or a person associated with that member;
      (c) Has failed to discharge the duties or functions of his office or employment;
      (d) Is an undischarged bankrupt, whether in Bahrain or elsewhere;
      (e) Has had execution against him in respect of a judgment debt returned unsatisfied in whole or in part;
      (f) Has, whether in Bahrain or elsewhere, made a compromise or scheme of arrangement with his creditors, being a compromise or scheme of arrangement that is still in operation; or
      (g) Has been convicted, whether in Bahrain or elsewhere, of an offence involving fraud or dishonesty, or the conviction for which involved a finding that he had acted fraudulently or dishonestly.
      Amended: April 2016

    • CSD-6.4.2

      Without prejudice to any other matter that the CBB may consider relevant, the CBB may, in determining whether an officer of a licensed clearing house or licensed central depository has failed to discharge the duties or functions of his office or employment for the purposes of rule CSD-6.4.1 (c), have regard to such criteria as the CBB may prescribe or specify in directions issued by notice in writing.

      Amended: April 2016

    • CSD-6.4.3

      Subject to Paragraph CSD-6.4.4, the CBB shall not direct a licensed clearing house or licensed central depository to remove an officer from his office or employment, without giving the licensed clearing house or licensed central depository an opportunity to be heard.

      Amended: July 2016
      Amended: April 2016

    • CSD-6.4.4

      The CBB may direct a licensed clearing house or licensed central depository to remove an officer from his office or employment under rule CSD-6.4.1 on any of the following grounds, without giving the licensed clearing house or licensed central depository an opportunity to be heard:

      (a) The officer is an undischarged bankrupt, whether in Bahrain or elsewhere;
      (b) The officer has been convicted, whether in Bahrain or elsewhere, of an offence:
      (i) Involving fraud or dishonesty, or the conviction for which involved a finding that he had acted fraudulently or dishonestly; or
      (ii) Punishable with imprisonment for a term of 3 months or more.
      Amended: April 2016

    • CSD-6.4.5

      Where the CBB directs a licensed clearing house or licensed central depository to remove an officer from his office or employment under rule CSD-6.4.1, the CBB need not give that officer an opportunity to be heard.

      Amended: April 2016

    • CSD-6.4.6

      No criminal or civil liability shall be incurred by a licensed clearing house or licensed central depository in respect of anything done or omitted to be done with reasonable care and in good faith in the discharge or purported discharge of its obligations under this Section.

      Amended: April 2016