Objects and Reasons.
1. Section 3 of the principal Ordinance, No. 11 of 1907. requires life insurance companies to make deposits with the Registrar of Companies. Many of these deposits consist of mortgages of leasehold properties in the Colony. Clause 2 of this Bill amends the section so as to bring its language into line with section 5 (1) of the Fire and Marine Insurance Companies Deposit Ordinance, No. 32 of 1917.
2. The Registrar of Companies has no power under the principal Ordinance to require life insurance companies to make up deficiencies in the event of the securities falling below the value at which they were originally accepted, though he has such power in respect of fire and marine insurance companies under the Regulations in the First Schedule to the Fire and Marine Insurance Companies Deposit Ordinance, No. 32 of 1917, and also in respect of trust companies under section 81 (2) of the Trustec Ordinance, No. 18 of 1934.
3. In order to give the Registrar of Companies similar powers in respect of life insurance companies as he now has in respect of fire and marine insurance companies, and trust companies, regulations will be made by the Governor in Council under the powers conferred by section 34 of the principal Ordinance.
4. As the new regulations might cause misunderstand- ings to arise as to the meaning of section 5 of the principal Ordinance, clause 3 of this Bill repeals that section and substitutes a new section based on section 5 (5) of the Fire and Marine Insurance Companies Deposit Ordinance, No. 32 of 1917.
5. Section 7 of the principal Ordinance is repealed by clause 4 of the Bill because the subject is more conveniently dealt with in the new regulations.
6. The general effect of the above amendments is to bring the principal Ordinance more closely into line with the Fire and Marine Insurance Companies Deposit Ordinance, 1917, and section 81 (2) of the Trustee Ordinance, 1934.
June, 1937.
C. G. ALABASTER,
Attorney General.
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