1988 Ed.]
Insurance Companies
[CAP. 41
33
(a) that the company is unable to pay its debts within the meaning of sections 177 and 178 or section 327 of that Ordinance;
(b) that the company has failed to satisfy an obligation to which it is or was subject by virtue of this Ordinance or any Ordinance repealed thereby; or
(c) that the company, being under the obligation imposed by section 16 with respect to the keeping or preserving of proper books of account, has failed to satisfy that obligation or to produce books kept in satisfaction of that obligation.
(2) In any proceedings on a petition to wind up an insurer presented by the Insurance Authority under subsection (1), evidence that the company was insolvent-
(a) at the close of the period to which the accounts and balance sheet of the company last deposited under section 20 relate; or
(b) at any date or time specified in a requirement under section 32 or 34, shall be evidence that the company continues to be unable to pay its debts, unless the contrary is proved.
(3) If, in the case of an insurer, being a company which may be wound up by the Court under the Companies Ordinance (Cap. 32), it appears to the Insurance Authority that it is expedient in the public interest that the company should be wound up, he may, unless the company is already being wound up by the Court, present a petition for it to be so wound up if the Court thinks it just and equitable for it to be so wound up.
(4) Where a petition for the winding up of an insurer is presented by a person other than the Insurance Authority, a copy of the petition shall be served on him and he shall be entitled to be heard on the petition and to call, examine and cross-examine any witness and, if he so thinks fit, support or oppose the making of a winding-up order.
Winding up of insurer with long term business
45. (1) Unless the Court otherwise orders, an insurer which carries on long term business shall not be wound up voluntarily; but no order shall be made under this subsection unless notice of the application has been served on the Insurance Authority who shall be entitled to be heard on the application and to call, examine and cross-examine any witness and, if he so thinks fit, support or oppose the making of the order.
(2) Section 23(1) shall not have effect in relation to the winding up of an insurer to which section 22(1) applies but, subject to subsection (4) and to rules made by virtue of section 49(2), in any such winding up-
(a) the assets representing the fund or funds maintained by the insurer in respect of its long term business shall be available only for meeting the liabilities of the insurer attributable to that business:
(b) the other assets of the insurer shall be available only for meeting the liabilities of the insurer attributable to its other business.