Effect of assumption of control under section 102
103.—(1)  Upon assuming control of the relevant business of a licensed insurer, the Authority or statutory manager (as the case may be) must take custody or control of the relevant business.
[16/2011; 11/2013]
(2)  During the period when the Authority or statutory manager is in control of the relevant business of a licensed insurer, the Authority or statutory manager must manage the relevant business of the licensed insurer in the name of and on behalf of the insurer and is deemed to be an agent of the insurer.
[16/2011; 11/2013]
(3)  In managing the relevant business of a licensed insurer, the Authority or statutory manager —
(a)must take into consideration the interests of the policy owners of the licensed insurer; and
(b)has all the duties, powers and functions of the members of the board of directors of the licensed insurer (collectively and individually) under this Act, the Companies Act 1967 and the constitution of the licensed insurer, including powers of delegation, in relation to the relevant business of the licensed insurer; but nothing in this paragraph requires the Authority or the statutory manager to call any meeting of the licensed insurer under the Companies Act 1967, the Co‑operative Societies Act 1979 or the constitution of the licensed insurer.
[16/2011; 11/2013]
(4)  Despite any written law or rule of law, on the assumption of control of the relevant business of a licensed insurer by the Authority or statutory manager —
(a)where the licensed insurer is established or incorporated in Singapore, any appointment of a person as a chief executive or director of the licensed insurer; or
(b)where the licensed insurer is established or incorporated outside Singapore, any appointment of a person as a chief executive of the insurer insofar as the appointment relates to the relevant business of the licensed insurer,
which was in force immediately before the assumption of control, is deemed to be revoked unless the Authority gives its approval, by written notice to the person and the licensed insurer, for the person to remain in the appointment.
[16/2011; 11/2013]
(5)  Despite any written law or rule of law, during the period when the Authority or statutory manager is in control of the relevant business of a licensed insurer, no person may be appointed —
(a)where the licensed insurer is established or incorporated in Singapore, as a chief executive or director of the licensed insurer; or
(b)where the licensed insurer is established or incorporated outside Singapore, as a chief executive of the licensed insurer, insofar as the appointment relates to the relevant business of the licensed insurer,
except with the approval of the Authority.
[16/2011; 11/2013]
(6)  Where the Authority has given its approval under subsection (4) or (5) for a person to remain in the appointment of, or for a person to be appointed as, a chief executive or a director of a licensed insurer, the Authority may at any time, by written notice to the person and the licensed insurer, revoke its approval and such appointment is deemed to be revoked on the date specified in the notice.
[16/2011; 11/2013]
(7)  Despite any written law or rule of law, if any person, whose appointment as a chief executive or director of a licensed insurer is revoked under subsection (4) or (6), acts or purports to act after the revocation —
(a)where the licensed insurer is established or incorporated in Singapore, as a chief executive or director of the insurer; or
(b)where the licensed insurer is established or incorporated outside Singapore, as a chief executive of the licensed insurer in relation to the relevant business of the insurer,
during the period when the Authority or statutory manager is in control of the relevant business of the licensed insurer —
(c)the act or purported act of the person is invalid and of no effect; and
(d)the person shall be guilty of an offence.
[16/2011; 11/2013]
(8)  Despite any written law or rule of law, if any person who is appointed as a chief executive or director of a licensed insurer in contravention of subsection (5) acts or purports to act —
(a)where the licensed insurer is established or incorporated in Singapore, as a chief executive or director of the licensed insurer; or
(b)where the licensed insurer is established or incorporated outside Singapore, as a chief executive of the licensed insurer in relation to the relevant business of the licensed insurer,
during the period when the Authority or statutory manager is in control of the relevant business of the licensed insurer —
(c)the act or purported act of the person is invalid and of no effect; and
(d)the person shall be guilty of an offence.
[16/2011; 11/2013]
(9)  During the period when the Authority or statutory manager is in control of the relevant business of a licensed insurer —
(a)if there is any conflict or inconsistency between —
(i)a direction or decision given by the Authority or statutory manager (including a direction or decision to a person or body of persons referred to in sub-paragraph (ii)); and
(ii)a direction or decision given by a chief executive, director, member, executive officer, employee, agent or office holder, or the board of directors, of the licensed insurer,
the direction or decision referred to in sub-paragraph (i), to the extent of the conflict or inconsistency, prevails over the direction or decision referred to in sub-paragraph (ii); and
(b)a person must not exercise any voting or other right attached to any share in the licensed insurer in any manner that may defeat or interfere with any duty, function or power of the Authority or statutory manager, and any such act or purported act is invalid and of no effect.
[16/2011; 11/2013]
(10)  Any person who is guilty of an offence under subsection (7) or (8) shall be liable on conviction to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part of a day during which the offence continues after conviction.
[11/2013]
(11)  In this section, “constitution of the licensed insurer” means the memorandum of association and articles of association of the licensed insurer or other instrument under which the licensed insurer is established or incorporated.
[41A
[16/2011; 11/2013]