FINANCIAL INSTITUTIONS LAW ( PART 35)

Article 111
Recovery and corrective plan

1. If any of the conditions described in the previous article occurs, the Supervisory Entity may oblige the institution in question to prepare and submit for approval a recovery and corrective plan, within the defined deadline.

2. The Supervisory Entity may define the conditions for the acceptance of the recovery and corrective plan, namely, a capital raise, disposal of capital shareholdings or other assets, or further conditions as it may find suitable.

3. When the measures stipulated in the previous numbers are not approved by the shareholders, or the amounts involved are so large that they may jeopardize the concretization of the plan, then the Supervisory Entity, if a serious risk of failure by the institution exists, namely regarding the safety of funds entrusted to the institution, may submit an intervention plan that, among others, shall include the necessary capital raise and, if required, determine the prior absorption of damages by the relevant positive elements of their own funds.

4. The National Bank of Angola may invite other financial institutions with registered office in the country to co-operate in the corrective measures, namely, to bring in fresh money or financial support, and shall be responsible for the coordination of such co-operation.

5. In case the conditions imposed by the Supervisory Authority, or its proposals as presented are not accepted, the authorization to exercise may be revoked.

Article 112
Nomination of provisional administrators

1. The Supervisory Entity may nominate, one or more, provisional administrators for the financial institution when:

a) the institution is at risk of suspending payments;
b) the institution is in a situation of financial imbalance, which due to its duration or seriousness, constitutes a grave threat to solvency;
c) for whatever reason the administration cannot offer guarantees of prudent operation, placing creditors’ interests at serious risk;
d) the accounting or internal control procedures reveal such serious insufficiencies the asset situation of the institution cannot be adequately evaluated.

2. The administrators nominated by the Supervisory Entity shall have the powers and duties conferred by law and by statute to the administrative body, plus the following:

a) veto the decisions of the general assembly and, if necessary, of the bodies referred to in number 3 of this article;
b) to summon a general assembly;
c) to draw up, within a ninety day period, renewable for a similar period, a report on the asset situation of the institution, and its causes, and submit it to the responsible Supervisory Entity based on the closing balance of the day when the provisional administrators were nominated, accompanied by a legal opinion of the supervisory commission, if appointed.

3. Having nominated provisional administrators the responsible Supervisory Entity shall suspend, the administrative body and any other body with similar duties.

4. The provisional administrators shall perform their duties for a period determined by the Supervisory Entity, up to a maximum of one year, renewable once for a similar period.

5. Payment of the provisional administrators is determined by the Supervisory Entity, and falls to the responsibility of the institution in question.

Article 113
Responsibility of the suspended administrators

1. For the purpose of number 3 of article 120 of this law, jointly with the suspension of the members of the administrative body or of any other bodies with similar duties, the Supervisory Entity shall require a judicial decision prohibiting the personal patrimony of the above referred members to be transferred, in any manner.

2. The prohibition referred to in the previous number will last for as long as the extraordinary measures stipulated in this chapter last.

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