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Banking Act

Commencement: 17 September 1970

LAWS OF THE REPUBLIC OF VANUATU

LAWS OF THE REPUBLIC OF VANUATU

REVISED EDITION 1988

CHAPTER 63

BANKING

QR 4 of 1970
QR 3 of 1971
QR 11 of 1971
QR 2 of 1973
QR 10 of 1973
QR 8 of 1978
Act 31 of 1981
Act 10 of 1984
Act 10 of 1998

ARRANGEMENT OF SECTIONS

SECTION

PART 1
Preliminary

1. Interpretation

PART II
Licensing of financial institutions

2. Necessity for licence
3. Application for licence
4. Granting and revocation of licence
5. Alterations, reconstruction, arrangements and agreements

PART III
Capital and Reserves

6. Minimum capital of a financial institution
7. Maintenance of reserve fund

PART IV
Restrictions on business

8. Restriction on dividends
9. Persons debarred from management
10. Restriction on use of title "bank"
11. Restriction on certain activities by licensed financial institutions
12. Additional restrictions on certain activities by licensed banks
13. Minimum holdings of liquid assets

PART V
Accounts

14. Publication of balance sheet

PART VI

Examination and Audit

15. Examinations

16. Production of books, etc.

17. Powers after examination

18. Approved auditor

PART VII
Exempted Banks and Financial Institutions

19. Exempted banks and financial institutions
20. Provisions not applying to exempted banks and financial institutions

PART VIII
General

21. Fee payable by licensed financial institution
22. Attorney General's fiat
23. Imprisonment in default of payment of fine
24. Rules

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BANKING

To provide for the regulation of the business of banking and for purposes connected therewith.

PART 1

PRELIMINARY

INTERPRETATION

1. (1) In this Act, unless the contrary intention appears, the expression-

"bank" means any financial institution whose business includes the acceptance of deposits of money withdrawable by cheque;

"banking business" means the business of accepting deposits of money which may be withdrawn or repaid on demand or after a fixed period or after notice and the employment of those deposits in whole or in part by lending or any other means for the account and at the risk of the person accepting such deposits and shall be deemed to include merchant banking business;

"company" means a company as defined in the Companies Act, Cap. 191 and includes any company incorporated outside Vanuatu which is lawfully entitled to carry on business within or from within Vanuatu and shall be deemed to include any statutory corporation whether established in or outside Vanuatu;

"director" includes an individual occupying the position of director or alternate director of a company by whatever name he may be called and includes a member of a local board of a company whose head office is situated outside Vanuatu;

"financial institution" means a company which carries on a banking business;

"licensed" means licensed under this Act to conduct banking business;

"manager" includes any person for the time being in charge of the principal office in Vanuatu of any bank;

"merchant banking business" means any business which includes the arranging, negotiation, flotation, discounting or underwriting of loans for profit whether as principal or agent;

"Minister" means the Minister responsible for finance;

"officer" includes a director, manager or secretary;

" person" includes a body of persons corporate or unincorporate.

(2) For the purposes of this Act, a person shall be deemed to accept deposits of money if he advertises for or solicits such deposits from the general public irrespective of any terms and conditions under which such deposits of money are solicited or received and whether or not certificates or other instruments are issued in respect of such deposits.

PART II

LICENSING OF FINANCIAL INSTITUTIONS

NECESSITY FOR LICENCE

2. (1) Notwithstanding the provisions of any other law, no banking business shall, save as hereinafter provided, be carried on in or from within Vanuatu except by a licensed financial institution.

(2) Any person who contravenes the provisions of subsection (1) shall be guilty of an offence and liable on conviction to a fine not exceeding VT50,000 for each day during which the offence continues.

APPLICATION FOR LICENCE

3. (1) Any company desirous of commencing banking business in or from within Vanuatu shall apply to the Minister for a licence.

(2) An application for a licence under this Act shall be made to the Minister in such form and in such manner as may be specified by the Minister and shall be accompanied by a copy of the memorandum and articles of association or of any other instrument under which it is incorporated and such other information as the Minister may require.

GRANTING AND REVOCATION OF LICENCE

4. (1) Subject to the provisions of this Act the Minister may, at his discretion, grant a licence in respect of which application has been made under section 3; but if the Minister is of the opinion that it would be undesirable in the public interest that the licence should be granted, he may refuse to grant it and need not give any reason for so refusing.

(2) A licence shall not be granted to any company having its head office outside Vanuatu unless such company notifies and designates to the Minister-

(a) a principal office in Vanuatu;

(b) by name an officer or agent of the company resident in Vanuatu who is to be the authorised agent of the institution in Vanuatu; and

(c) by name another officer or agent of the company resident in Vanuatu who, in the absence or inability to act of the officer named under paragraph (b) of this subsection, is to be the authorised agent of the institution in Vanuatu.

(3) Every company which holds a licence and which has its head office outside Vanuatu shall forthwith notify the Minister of any change of-

(a) its principal office in Vanuatu; or

(b) either or both of the officers designated pursuant to subsection (2)(b) or (2)(c).

(4) The Minister may at any time by Order revoke a licence

(a) for any contravention of any provision of this Act or rule made thereunder; or

(b) for failure by the licensed financial institution concerned to comply with any directive issued by the Minister under this Act; or

(c) if in the opinion of the Minister the licensed financial institution concerned is carrying on business in or from within Vanuatu in a manner detrimental to the public interest or to the interest of the depositors of such institution; or

(d) if in the opinion of the Minister the licensed financial institution concerned ceases to carry on banking business in or from within Vanuatu; or

(e) if the licensed financial institution concerned goes into liquidation or is wound up or otherwise dissolved; or

(f) in the circumstances referred to in paragraph (c) of section 17.

(5) Before making an Order under subsection (4) the Minister shall give the financial institution concerned notice in writing of his intention to do so specifying therein the grounds on which he proposes to revoke the licence and shall afford that institution an opportunity of submitting to him a written statement of objections to the making of the Order and thereafter the Minister shall advise the institution of his decision in the matter.

ALTERATIONS, RECONSTRUCTION, ARRANGEMENTS AND AGREEMENTS

5. (1) When and as often as any alteration is made in the memorandum or articles of association of a licensed financial institution or in any other instrument whereunder the said institution was incorporated, that institution shall forthwith give the Minister full particulars in writing of such alteration.

(2) Particulars given pursuant to subsection (1) shall be verified by an affidavit or declaration sworn to or, as the case may be, made by a senior officer of the financial institution.

(3) Where a reconstruction of any licensed financial institution has occurred or where any licensed financial institution makes an arrangement or enters into an agreement for-

(a) the sale or other disposal of its business by amalgamation or otherwise; or

(b) the purchase or other acquisition of the business of any other licensed financial institution,

such licensed financial institution shall, forthwith after the occurrence of the said reconstruction or after the implementation of the said arrangement or agreement, inform the Minister in writing thereof.

(4) Where any particulars or information are received under this section, the Minister, having regard to the nature of such particulars or information and notwithstanding the fact that the financial institution concerned is a licensed financial institution, may direct that institution in writing to apply for another licence within such time and in such form as the Minister may determine.

(5) The issue of a directive pursuant to subsection (4) shall not affect the validity of any licence subsisting at the date of such directive and which was granted to the financial institution to which the said directive is issued.

(6) Every licence to which subsection (5) refers shall be of full force and effect until-

(a) it is revoked by the Minister by Order under section 4(4); or

(b) another licence is granted to the financial institution concerned upon an application made pursuant to a directive under subsection (4),

and thereafter the licence referred to in subsection (5) shall cease to have effect.

(7) Any licensed financial institution which fails to comply with any of the provisions of section 4(3) or of subsection (1), subsection (2) or subsection (3) of this section or with any requirement of the Minister thereunder shall be guilty of an offence and liable on conviction to a fine not exceeding VT50,000 for every day during which the offence continues.

PART III

CAPITAL AND RESERVES

MINIMUM CAPITAL OF A FINANCIAL INSTITUTION

6. (1) A licence shall not be granted to-

(a) a financial institution whose head office is situated in Vanuatu unless the aggregate of its capital issued and paid up in cash and outstanding and its unimpaired reserves is not less than VT12,500,000;

(b) a financial institution whose head office is situated outside Vanuatu unless the aggregate of its capital issued and paid up in cash and outstanding and its unimpaired reserves is not less than VT50,000,000.

(2) Notwithstanding the provisions of subsection (1), a licence shall not be granted to a bank unless, in the case of a bank incorporated in Vanuatu, the aggregate of its capital issued and paid up in cash and outstanding and its unimpaired reserves is not less than VT50,000,000 and, in the case of a bank incorporated outside Vanuatu the aggregate of its capital issued and paid up in cash and outstanding and its unimpaired reserves is not less than VT200,000,000.

(3) The Minister may make rules requiring every licensed financial institution or bank-

(a) incorporated within Vanuatu; or

(b) incorporated outside Vanuatu,

to maintain a specified minimum level of capital and reserves within Vanuatu as he may consider desirable, so however that the minimum shall be the same for all financial institutions or banks, as the case may be, within either class and in the case of financial institutions or banks incorporated outside Vanuatu shall not exceed that prescribed for financial institutions or banks, as the case may be, incorporated within Vanuatu.

MAINTENANCE OF RESERVE FUND

7. (1) Subject to subsection (2), every licensed financial institution shall maintain a reserve fund and shall, out of its net profits of each year and before any dividend is declared, transfer to that fund a sum equal to not less than 25 per cent of such profits whenever the amount of the reserve fund is less than the issued paid up capital of the company.

(2) Subsection (1) shall not apply to any licensed financial institution with respect to which it is proved to the satisfaction of the Minister that the aggregate reserves of such institution are adequate in respect of its business.

PART IV

RESTRICTIONS ON BUSINESS

RESTRICTION ON DIVIDENDS

8. No licensed financial institution incorporated in Vanuatu shall pay any dividend on its shares, and no licensed financial institution incorporated outside Vanuatu shall remit any profits outside Vanuatu, until all its capitalised expenditure (including preliminary expenses, organisation expenses, share selling commission, brokerage and amounts of losses incurred) not represented by tangible assets has been completely written off.

PERSONS DEBARRED FROM MANAGEMENT

9.-(1) Any person-

(a) who has been a director of, or directly concerned in the management of, a financial institution which has had its licence revoked in accordance with section 17(c) or has been wound up by a Court, or

(b) who has been sentenced by a court in any country to a term of imprisonment for an offence involving dishonesty and has not received a full pardon for that offence, or

(c)who is or becomes bankrupt, suspends payment to or compounds with his creditors,

shall not without the express authorisation of the Minister act or continue to act as a director, manager, secretary or other employee of, any financial institution.

(2) Any person who contravenes the provisions of subsection (1) shall be guilty of an offence and liable on conviction to a fine not exceeding VT500,000.

RESTRICTION ON USE OF TITLE "BANK"

10. (1) Save with the permission of the Minister no person other than a licensed bank shall use the word "bank" or any of its derivatives in any language in the description or title under which such person is carrying on business in or from within Vanuatu; or make any such representation in any billhead, letter paper, notice, advertisement or in any other manner whatsoever:

Provided that nothing in this subsection shall apply to an association of banks or bank employees, formed for the protection of their common interests.

(2) Every bank shall use as part of its description or title the word "bank" or one or more of its derivatives in any language.

(3) Any person contravening this section shall be guilty of an offence and liable on conviction to a fine not exceeding VT50,000 for each day during which the contravention continues.

RESTRICTION ON CERTAIN ACTIVITIES BY LICENSED FINANCIAL INSTITUTIONS

11. (1) A licensed financial institution shall not in or from within Vanuatu-

(a) grant to any person, firm, corporation or company, or to any group of companies or of persons which group is under the control or influence of one and the same person, any advance or credit facility, or give any financial guarantee or incur any other liability on behalf of such person, firm, corporation, company, or group so that the total value of the advances, credit facilities, financial guarantees and other liabilities in respect of such person, firm, corporation, company or group is at any time more than 25 per cent of the sum of the paid up capital and published reserves of the licensed financial institution:

Provided that this paragraph shall not apply to transactions between banks or between the branches of a bank, or to the purchase of telegraphic transfers, or to the purchase of bills of exchange or documents of title to goods where the holder of such bills or documents is entitled to payment outside Vanuatu for exports from Vanuatu or to advances made against such transfers, bills or documents;

(b) grant any advance or credit facility against the security of its own shares;

(c) grant or permit to be outstanding unsecured advances or unsecured credit facilities of an aggregate amount in excess of VT300,000 or of 1 per cent of the sum of the paid up capital and published reserves of such licensed financial institution, whichever is the greater, or give any financial guarantees in excess of such amount without security, or incur any other liability in excess of such amount without security-

(i) to or on behalf of any one of its directors, whether such advances, facilities, guarantees or other liabilities are obtained by or on account of such director jointly or severally;

(ii) to or on behalf of any firm, partnership or private company in which it, or any one or more of its directors is interested as director, partner, manager or agent, or to or on behalf of any individual, firm, partnership or private company of whom or of which any one or more of its directors is a guarantor:

for the purpose of this paragraph a director includes a wife, husband, father, mother, son or daughter of a director and the expression "private company" has the meaning assigned thereto by the Companies Act, Cap. 191;

(d) grant or permit to be outstanding to its officials and employees unsecured advances or unsecured credit facilities which in aggregate amount for any one official or employee exceed 1 year's emoluments of such official or employee.

(2) In subsection (1) paragraphs (c) and (d) the expression "unsecured advances or unsecured credit facilities" means advances or credit facilities granted without security, or, in respect of any advance or credit facility granted with a security, any part thereof which at any time exceeds the market value of the assets constituting that security.

ADDITIONAL RESTRICTIONS ON CERTAIN ACTIVITIES BY LICENSED BANKS

12. A licensed bank shall not in Vanuatu-

(a) engage, whether on its own account or on a commission basis, in the wholesale or retail trade, including the import or export trade, or otherwise have a direct interest in any commercial, agricultural, industrial or other undertaking, except as permitted under paragraph (b) and except insofar as may be necessary with respect to such interest as a bank may acquire in the course of the satisfaction of debts due to it; but all such interests shall be disposed of at the earliest suitable opportunity;

(b) acquire or hold to an aggregate value exceeding 25 per cent of the sum of the paid up capital and published reserves of that bank, any part of the share capital of any financial, commercial, agricultural, industrial or other undertaking except such shareholding as a bank may acquire in the course of the satisfaction of debts due to it which shareholding shall, however, be disposed of at the earliest suitable moment:

Provided that this paragraph shall not apply to any shareholding approved in writing by the Minister in a subsidiary bank or in a subsidiary company formed by a bank for the execution of nominee, executor or trustee functions or other functions incidental to banking business;

(c) purchase, acquire or lease real estate except as may be necessary for the purpose of conducting its business or housing its staff or having regard to any reasonable requirements for future expansion of its business or staff; but in the event of any debt due to a bank which is secured upon any real or other property of the debtor becoming endangered, the bank may acquire such property which shall, however, be resold at the earliest suitable moment.

MINIMUM HOLDINGS OF LIQUID ASSETS

13. (1)

(a) Every licensed bank shall in relation to its operations in Vanuatu maintain such minimum holding of liquid assets as may from time to time be prescribed by rules made by the Minister, so however that the minimum shall be the same for all banks and shall not exceed 25 per cent of deposit liabilities.

(b) Every licensed financial institution not being a bank shall in relation to its operations in Vanuatu maintain such minimum holding of liquid assets as may from time to time be prescribed by rules made by the Minister so however that the minimum shall be the same for all such financial institutions and shall not exceed 25 per cent of deposit liabilities.

(2) The Minister shall determine the method of computing the amounts of liquid assets to be held by banks and financial institutions.

(3) For the purposes of this section, "liquid assets" means such assets as the Minister may specify.

(4) Any licensed bank or licensed financial institution which fails to comply, within such reasonable time as the Minister may fix, with any requirement of subsection (1) shall be liable to pay, on being called upon to do so by the Minister, a penalty interest charge not exceeding one-tenth of 1 per cent of the amount of the deficiency for every day during which the deficiency continues.

PART V

ACCOUNTS

PUBLICATION OF BALANCE SHEET

14. (1) Not later than 4 months after the close of each financial year of each licensed financial institution, or such longer period as the Minister may in any particular case permit, the financial institution shall publish in the Gazette and exhibit thereafter in a conspicuous position in each of its offices and branches in Vanuatu, and forward to the Minister copies of its balance sheet and profit and loss account and the full and correct names of the directors of the financial institution. The balance sheet and profit and loss account shall bear on their face the certificate of an auditor who is an approved auditor in accordance with section 18(5). The licensed institution shall immediately thereafter give public notification by notice in 2 succeeding issues of any national publication that the balance sheet and profit and loss account have been published in the Gazette as aforesaid and may be inspected at each of its said offices and branches in Vanuatu.

(2) Any licensed financial institution which contravenes this section shall be guilty of an offence and liable on conviction to a fine not exceeding VT50,000.

PART VI

EXAMINATION AND AUDIT

EXAMINATIONS

15. (1) The Minister may at his discretion from time to time appoint one or more qualified persons to make examinations under conditions of secrecy of the books and affairs of all licensed financial institutions.

(2) The Minister may at any time appoint one or more qualified persons to make a special examination under conditions of secrecy of the books and affairs of any licensed financial institution-

(a) where he has reason to believe that such institution may be carrying on its business in a manner detrimental to the interests of its depositors and other creditors or may have insufficient assets to cover its liabilities to the public or may be, either in Vanuatu or elsewhere, contravening any of the provisions of this Act;

(b) where application is made by shareholders holding not less than one-third of the total number of shares in that institution for the time being issued or by depositors holding not less than one-half of the gross amount of the total deposit liabilities in Vanuatu of that institution; but the applicants shall submit to the Minister such evidence as he may consider necessary to justify an examination and they shall furnish adequate security for the payment of the cost of the examination;.

(c) if the financial institution suspends payment or informs the Minister of its intention to do so.

PRODUCTION OF BOOKS, ETC.

16. (1) Every licensed financial institution of which an examination has been ordered under section 15 shall produce to the person or persons appointed under the provisions of that section, at such times and in such places as such person or persons may specify (being times and places which, in the opinion of such person or persons, would not be detrimental to the conduct of the normal daily business of the financial institution) all books, accounts and documents in the possession or custody of such institution or of which it is entitled to possession or custody relating to its business, and shall give, within such times as such person or persons may specify, such oral information concerning its business as may be required.

(2) If any book, account, document or information is not produced in accordance with subsection (1) the financial institution shall be guilty of an offence and liable on conviction to a fine not exceeding VT50,000 in respect of every day during which the offence continues; and if any book, account, document or information specified in subsection (1) is false in any material particular, the financial institution concerned shall be liable to a fine of VT500,000.

(3) As soon as may be after the conclusion of an examination under section 15(2) of this Act, the person or persons appointed under the provisions of section 15 shall submit a full report on such examination to the Minister who shall forward a copy thereof to the head office of the financial institution concerned.

(4) The Minister may order that all expenses of and incidental to an examination under section 15(2) shall be paid by the financial institution examined and he may also, in respect of examinations made under section 15(2)(b), order that the said expenses shall be defrayed by the applicants. A financial institution shall not be required to pay expenses of and incidental to an examination under section 15(1).

POWERS AFTER EXAMINATION

17. If, in the opinion of the Minister an examination under this Part shows that the licensed financial institution concerned is carrying on its business in a manner detrimental to the interests of its depositors and other creditors, or has insufficient assets to cover its liabilities to the public, or is either in Vanuatu or elsewhere contravening any of the provisions of this Act, the Minister may take such one or more of the following steps from time to time as may seem to him necessary

(a) require the financial institution forthwith to take such measures as he may consider necessary in relation to its business, and if it is proved that such measures have not been taken, the financial institution shall be guilty of an offence and liable on conviction to a fine not exceeding VT50,000 in respect of every day during which the offence continues; and the officer responsible shall be guilty of an offence and liable on conviction to a fine not exceeding VT50,000; or

(b) appoint a person who, in his opinion, has had adequate training and experience to advise the financial institution in the proper conduct of its business and fix the remuneration to be paid by the financial institution to such person; or

(c) unless he is satisfied that the financial institution is taking adequate measures to put its affairs in order, make an Order under section 4(4)(f) revoking the licence of the financial institution.

APPROVED AUDITOR

18. (1) Every licensed financial institution shall appoint annually an approved auditor whose duties shall be to make to the shareholders of that institution a report upon the annual balance sheet and accounts, and in every such report the auditor shall state whether, in his opinion, the balance sheet is full and fair and properly drawn up, whether it exhibits a true and correct statement of the financial institution's affairs, and, in any case in which the auditor has called for explanation or information from the officers or agents of the financial institution, whether this is satisfactory.

(2) The report of an approved auditor under subsection (1) shall be read together with the report of the directors of the financial institution at the annual meeting of shareholders and copies of that report shall be sent to the Minister, together with copies of the balance sheet and profit and loss account, and if any default is made in complying with the requirements of this subsection, the financial institution concerned shall be guilty of an offence and liable on conviction to a fine not exceeding VT500,000.

(3) If a licensed financial institution fails to appoint an approved auditor under subsection (1) or, at any time, fails to fill a vacancy for such auditor the Minister may appoint an approved auditor and shall fix the remuneration to be paid by that institution to such auditor.

(4) The duties and powers conferred by sections 16(1), 16(2) and 16(3) in relation to a person or persons appointed under the provisions of section 15 are hereby conferred also in relation to approved auditors.

(5) For the purposes of this section, an approved auditor is an auditor who is a member of one of the professional bodies for the time being declared by rules made by the Minister to be approved for such purposes.

(6) No person having an interest in any financial institution otherwise than as depositor, and no director, officer or agent of any financial institution shall be eligible for appointment as an approved auditor for that institution; and any person appointed as such auditor to any financial institution who subsequently acquires such interest or becomes a director, officer or agent of that institution shall cease to be such auditor.

(7) Where, in the case of a licensed financial institution incorporated outside Vanuatu, the Minister is satisfied that a report upon the annual balance sheet and accounts of such institution has been duly made by an auditor in accordance with the law of the country in which such institution is incorporated, and a copy of such report together with the report of the directors of such institution is sent to the Minister, he may by notice in writing exempt any such financial institution from the provisions of this section.

PART VII

EXEMPTED BANKS AND FINANCIAL INSTITUTIONS

EXEMPTED BANKS AND FINANCIAL INSTITUTIONS

19. (1) In any case where, upon application to the Minister under the provisions of section 3 for a licence to carry on banking business, the proposed banking business is to be carried on outside Vanuatu, the company may if it so requests be licensed as an exempted bank or financial institution.

(2) Where any company which is not an exempted company within the meaning of Part XI of the Companies Act, Cap. 191 is licensed as an exempted bank or financial institution under the provisions of subsection (1), the provisions of sections 378 and 380 of that Act shall apply to and with respect to such company as though it were such an exempted company.

PROVISIONS NOT APPLYING TO EXEMPTED BANKS AND FINANCIAL INSTITUTIONS

20. The provisions of sections 6, 7, 8, 11, 12, 13, and 14 shall not apply to or with respect to any exempted bank or financial institution..

PART VIII

GENERAL

FEE PAYABLE BY LICENSED FINANCIAL INSTITUTION

21. (1) Every company to which a licence is granted, other than an exempted bank or financial institution, shall upon the issue of such licence, and upon each anniversary thereof during the subsistence of the licence, pay to the Government a fee of VT200,000.

(2) Every company to which a licence is granted as an exempted bank or financial institution, shall upon the issue of such licence and upon each anniversary thereof during the subsistence of the licence, pay to the Government a fee of VT300,000.

(3) Any licensed financial institution which fails to pay the fee provided by this section shall, in addition to any other penalty under this Act for such failure, be guilty of an offence and liable on conviction to a fine not exceeding VT25,000 for each day during which such fee remains unpaid, and every director, manager, secretary or other officer of the financial institution who knowingly and wilfully authorises or permits such non-payments is liable to a like conviction and fine.

(4) The Minister shall publish annually in the Gazette the name of every financial institution which has paid the fee provided by this section.

ATTORNEY GENERAL'S FIAT

22. No prosecution in respect of any offence committed under this Act shall be instituted except by or with the consent of the Attorney General.

IMPRISONMENT IN DEFAULT OF PAYMENT OF FINE

23. A person upon whom a fine is imposed under this Act may be sentenced in default of payment thereof to imprisonment in the case of a fine-

(a) not exceeding VT100,000 for a period not exceeding 3 months;

(b) exceeding VT100,000 but not exceeding VT250,000 for a period not exceeding 6 months;

(c) exceeding VT250,000 but not exceeding VT500,000 for a period not exceeding 12 months.

RULES

24. The Minister may by Order make such rules as may be necessary for the purpose of carrying into effect the provisions of the Act.

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SUBSIDIARY LEGISLATION

BANKING RULES

LN 32 of 1973

Every licensed bank incorporated within Vanuatu shall at all times maintain a minimum level of capital and reserves within Vanuatu of VT50,000,000.

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