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Formal Consolidation |  2002 RevEd
Special provision for insurers directed to cease insurance business
43.—(1)  Where the Authority gives an insurer a direction under section 41(1)(e) by reason of the insolvency of the fund maintained by the insurer under this Act for either class of insurance business, the affairs of the insurer may be wound up by the court under the Companies Act (Cap. 50) as if it had suspended its business for a whole year or, in the case of a winding up under Division 5 of Part X of that Act, as if it had ceased to carry on business.
[22/73; 11/86]
(2)  Where the Authority gives an insurer a direction under section 41(1)(e) but, on a petition for the affairs of the insurer to be wound up by the court, the court is satisfied that the insurer will be able to pay its debts in full within 12 months or such longer period as the court thinks reasonable, the court may (if it thinks fit) order the affairs of the insurer to be wound up only as regards the insurance fund maintained for the class of insurance business to which the direction relates.
[11/86]
(3)  An order made under subsection (2) for a limited winding up shall be of the same effect as an order for the affairs of the insurer to be wound up generally, except in so far as this section otherwise provides.
(4)  Where such an order is made, the powers of the liquidator shall be exercisable only for the purpose of applying the assets of the relevant insurance fund (including such part of the deposit as is allocated to the insurance fund by the Authority under section 17(12)) in discharging the liabilities to which they are applicable, together with the costs, charges and expenses incurred in the winding up.
[11/86]
(5)  The insurer shall, from time to time, as the court may direct, make such additions to those assets as are required to secure that they are sufficient for the purpose or shall, if the court so directs, discharge any of those liabilities out of other assets.
(6)  In the winding up of the affairs of an insurer under such an order, the Companies Act (Cap. 50) shall have effect subject to the following modifications:
(a)section 250 (or, as the case may be, section 352) of that Act and other sections so far as they relate to contributories shall not apply;
(b)section 258 shall apply after, as it applies before, the making of the winding-up order, and section 262(3) of that Act shall not apply; and
(c)sections 259, 260, 319, 329, 330 and 332 to 335 of that Act shall not apply.
(7)  Where such an order is made, the court may, at any time, on the application of the liquidator or of any person who might petition for the affairs of the insurer to be wound up —
(a)substitute an order for the affairs of the insurer to be wound up generally; and
(b)give such directions as the court thinks fit as to matters in progress under the previous order,
and, subject to any such directions, the winding up shall, for all purposes connected with the substituted order, be deemed to have commenced at the time of the application for that order.
Informal Consolidation | Amended Act 42 of 2005
Special provision for insurers directed to cease insurance business
43.—(1)  Where the Authority gives an insurer a direction under section 41(1)(e) by reason of the insolvency of the fund maintained by the insurer under this Act for either class of insurance business, the affairs of the insurer may be wound up by the court under the Companies Act (Cap. 50) as if it had suspended its business for a whole year or, in the case of a winding up under Division 5 of Part X of that Act, as if it had ceased to carry on business.
[22/73; 11/86]
(2)  Where the Authority gives an insurer a direction under section 41(1)(e) but, on an application for the affairs of the insurer to be wound up by the court, the court is satisfied that the insurer will be able to pay its debts in full within 12 months or such longer period as the court thinks reasonable, the court may (if it thinks fit) order the affairs of the insurer to be wound up only as regards the insurance fund maintained for the class of insurance business to which the direction relates.
[11/86]
(3)  An order made under subsection (2) for a limited winding up shall be of the same effect as an order for the affairs of the insurer to be wound up generally, except in so far as this section otherwise provides.
(4)  Where such an order is made, the powers of the liquidator shall be exercisable only for the purpose of applying the assets of the relevant insurance fund (including such part of the deposit as is allocated to the insurance fund by the Authority under section 17(12)) in discharging the liabilities to which they are applicable, together with the costs, charges and expenses incurred in the winding up.
[11/86]
(5)  The insurer shall, from time to time, as the court may direct, make such additions to those assets as are required to secure that they are sufficient for the purpose or shall, if the court so directs, discharge any of those liabilities out of other assets.
(6)  In the winding up of the affairs of an insurer under such an order, the Companies Act (Cap. 50) shall have effect subject to the following modifications:
(a)section 250 (or, as the case may be, section 352) of that Act and other sections so far as they relate to contributories shall not apply;
(b)section 258 shall apply after, as it applies before, the making of the winding-up order, and section 262(3) of that Act shall not apply; and
(c)sections 259, 260, 319, 329, 330 and 332 to 335 of that Act shall not apply.
(7)  Where such an order is made, the court may, at any time, on the application of the liquidator or of any person who might apply for the affairs of the insurer to be wound up —
(a)substitute an order for the affairs of the insurer to be wound up generally; and
(b)give such directions as the court thinks fit as to matters in progress under the previous order,
and, subject to any such directions, the winding up shall, for all purposes connected with the substituted order, be deemed to have commenced at the time of the application for that order.