223
CAP. 411
Insurance Companies
[1988 Ed.
(a) the transfer to the transferee company of the whole or any part of the undertaking and of the property or liabilities of the transferor company;
(b) the allotting or appropriation by the transferee company of any shares, debentures, policies or other like interests in the transferee company which under the scheme are to be allotted or appropriated by the transferee company to or for any person;
(c) the continuation by or against the transferee company of any legal proceedings pending by or against the transferor company;
(d) the dissolution, without winding up, of the transferor company;
(e) such incidental, consequential and supplementary matters as are necessary to secure that the scheme shall be fully and effectively carried out.
(2) Where any such order provides for the transfer of property or liabilities, that property shall, by virtue of the order, be transferred to and vest in, and those liabilities shall, by virtue of the order, be transferred to and become the liabilities of, the transferee company, and in the case of any property, if the order so directs, freed from any mortgage or charge which is by virtue of the scheme to cease to have effect.
(3) For the purposes of any provision requiring the delivery of an instrument of transfer as a condition for the registration of a transfer of any property (including in particular section 66 of the Companies Ordinance (Cap. 32)) an order which by virtue of this section operates to transfer any property shall be treated as an instrument of transfer.
(4) Where a scheme is sanctioned by an order of the High Court under section 24 the transferee company shall, within 10 days from the date on which the order is made or such longer period as the Insurance Authority may allow, deposit 2 office copies of the order with the Insurance Authority.
(5) Any person who fails to comply with subsection (4) commits an offence and is liable to a fine of $10,000.
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(6) In this section "property" includes property, rights and powers of every description; "liabilities" includes duties, and "shares" and "debentures" have the same meaning as in the Companies Ordinance.
PART V
POWERS OF INTERVENTION
Grounds on which powers are exercisable
26. (1) Any power conferred on the Insurance Authority by sections 27 to 35 shall be exercisable in relation to any insurer on any of the following grounds-
(a) that the Insurance Authority considers the exercise of the power to be desirable for protecting policy holders or potential policy holders of the insurer against the risk that the insurer may be unable to meet its liabilities or to fulfil the reasonable expectations of policy holders or potential policy holders;