1964_INSURANCE_COMPANIES_ORDINANCE — Page 33

32

CAP. 41]

Insurance Companies

[1988 Ed.

(a) makes default in complying with any requirement imposed under section 27, 28, 29, 30, 31, 32, 33, 34 or 35; or

(b) in purported compliance with a requirement imposed under section 34 furnishes information which he knows to be false in a material particular or recklessly furnishes information which is false in a material particular,

commits an offence and is liable to-

(i) a fine of $100,000 and, in the case of an individual, to imprisonment for 2 years; and

(ii) in the case of an offence under paragraph (a), a fine of $500 for each day on which the offence continues.

(2) Where a person is charged with an offence under subsection (1)(a) in respect of his default in complying with a requirement imposed under section 34(2) or (3) to produce any books or papers, it shall be a defence to prove that they were not in his possession or control and that it was not reasonably practicable for him to comply with the requirement.

PART VI

INSOLVENCY AND WINDING UP

Circumstances in which insurer deemed to be insolvent

42. (1) An insurer shall be deemed for the purposes of sections 177 and 327 of the Companies Ordinance (Cap. 32) to be unable to pay its debts if at any time the value of the assets of the insurer does not exceed the amount of its liabilities by the relevant amount within the meaning of section 10.

(2) Nothing in this section shall be taken as affecting the manner in which, on a winding up, any assets or liabilities are required to be dealt with by virtue of section 45.

Winding up of insurer under Companies Ordinance

43. The High Court (in this Part referred to as "the Court") may order the winding up, in accordance with the Companies Ordinance, of an insurer and the provisions of that Ordinance shall apply accordingly subject to the modification that the insurer may be ordered to be wound up on the petition of 10 or more policy holders:

Provided that such a petition shall not be presented except by leave of the Court, and leave shall not be granted until a prima facie case has been established to the satisfaction of the Court and until security for costs for such amount as the Court may think reasonable has been given.

Winding up on petition of Insurance Authority

44. (1) The Insurance Authority may present a petition for the winding up, in accordance with the Companies Ordinance, of an insurer, being a company which may be wound up by the Court under that Ordinance, on the ground-