Section 71C: Temporary manager, Financial Services and Markets Act 2000

If the appropriate regulator is satisfied—

in the case of a relevant firm, that the conditions in section 71D(1), (2) and (4) are met in relation to that firm, or

in the case of a parent undertaking which is not a relevant firm, that the conditions in section 71D(1) and (4) are met in relation to that parent undertaking,

the appropriate regulator may appoint a person to act (or one or more persons to act jointly) as a temporary manager of that firm or that parent undertaking.

Where the appropriate regulator makes an appointment under subsection (1) in relation to a parent undertaking which is not a relevant firm, the regulator may also require the undertaking to remove—

all of its directors;

all of its senior executives.

A temporary manager may be appointed under subsection (1)—

to replace the directors of a relevant firm or a parent undertaking where they have been removed in compliance with a requirement imposed under section 71B or subsection (2), or

to work with the directors of a relevant firm or a parent undertaking.

A temporary manager has the functions specified in the instrument of appointment (see section 71F).

The functions which may be specified include (amongst other things)—

ascertaining the financial position of the relevant firm or the parent undertaking;

managing the business or part of the business of the relevant firm or the parent undertaking in order to preserve or restore the financial position of the firm or the parent undertaking;

taking measures to restore the prudent management of the relevant firm or the parent undertaking;

any function of the directors.

The temporary manager may, with the consent of the appropriate regulator—

require the directors to call a general meeting of the shareholders or members of the relevant firm or the parent undertaking, or

in the case where all of the directors have been removed in compliance with a requirement imposed under section 71B or subsection (2), call a general meeting of the shareholders or members of the relevant firm or the parent undertaking.

The temporary manager may propose business for consideration at the general meeting.

If the temporary manager is being appointed to work with the directors, the appropriate regulator—

may require the directors not to exercise specified functions during the period of appointment;

may require the directors to consult the temporary manager, or obtain the consent of the temporary manager, before taking specified decisions or specified action.

"Specified" means specified in the requirement.

Section 71C: Temporary manager

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