1988 Ed.]
Insurance Companies
ĮCAP. 41
35
(7) Notwithstanding section 199(1)(a) of the Companies Ordinance (Cap. 32) the liquidator may without either of the sanctions referred to therein make an application in the name of and on behalf of the insurer under section 24.
Winding up of insurers involved in transfer of business
47. (1) Where the insurance business or any part of the insurance business of an insurer has been transferred to an insurer under an arrangement in pursuance of which the first-mentioned insurer ("the transferor company") or the creditors thereof has or have claims against the insurer to which the transfer was made ("the transferee company"), then, if the transferee company is being wound up by the Court, the Court shall, subject to this section, order the transferor company to be wound up in conjunction with the transferee company, and may by the same or any subsequent order appoint the same person to be liquidator for the 2 companies, and make provision for such other matters as may seem to the Court necessary, with a view to the companies being wound up as if they were one company.
(2) The commencement of the winding up of the transferee company shall, save as otherwise ordered by the Court, be the commencement of the winding up of the transferor company.
(3) In adjusting the rights and liabilities of the members of the several companies between themselves, the Court shall have regard to the constitution of the companies, and to the arrangements entered into between the companies, in the same manner as the Court has regard to the rights and liabilities of different classes of contributories in the case of the winding up of a single company, or as near thereto as circumstances admit.
(4) Where any insurer alleged to be a transferor company is not in process of being wound up at the same time as the transferee company, the Court shall not direct the transferor company to be wound up unless, after hearing all objections (if any) that may be urged by or on behalf of the company against its being wound up, the Court is of opinion that the company is subsidiary to the transferee company, and that the winding up of the company in conjunction with the transferee company is just and equitable.
(5) An application may be made in relation to the winding up of any transferor company in conjunction with a transferee company by any creditor of, or person interested in, the transferee or transferor company.
(6) Where an insurer stands in the relation of a transferee company to one company, and in the relation of a transferor company to some other company, or where there are several companies standing in the relation of transferor companies to one transferee company, the Court may deal with any number of such companies together or in separate groups, as it thinks most expedient, upon the principles laid down in this section.
Reduction of contracts as alternative to winding up
48. In the case of an insurer which has been proved to be unable to pay its debts, the Court may, if it thinks fit, reduce the amount of the contracts of the insurer on such terms and subject to such conditions as the Court thinks just, in place of making a winding-up order.