34
CAP. 41]
Insurance Companies
[1988 Ed.
(3) Where the value of the assets mentioned in either paragraph of subsection (2) exceeds the amount of the liabilities mentioned in that paragraph the restriction imposed by that subsection shall not apply to so much of those assets as represents the excess.
(4) In relation to the assets falling within either paragraph of subsection (2) the creditors mentioned in section 200(1) and (2) of the Companies Ordinance (Cap. 32) shall be only those who are creditors in respect of liabilities falling within that paragraph; and any general meetings of creditors summoned for the purposes of that section shall accordingly be separate general meetings of the creditors in respect of the liabilities falling within each paragraph.
(5) Where under section 276(1) of the Companies Ordinance the Court orders any money or property to be repaid or restored to an insurer or any sum to be contributed to its assets then, if and so far as the wrongful act which is the reason for the making of the order related to assets representing a fund or funds maintained by the insurer in respect of its long term business, the Court shall include in the order a direction that the money, property or contribution shall be treated for the purposes of this Ordinance as assets of that fund or those funds and this Ordinance shall have effect accordingly.
Continuation of long term business of insurer in liquidation
46. (1) This section has effect in relation to the winding up of an insurer being a company carrying on long term business.
(2) The liquidator shall, unless the Court otherwise orders, carry on the long term business of the insurer with a view to its being transferred as a going concern to another insurer, whether an existing insurer or an insurer formed for that purpose; and, in carrying on that business as aforesaid, the liquidator may agree to the variation of any contracts of insurance in existence when the winding-up order is made but shall not effect any new contracts of insurance.
(3) If the liquidator is satisfied that the interests of the creditors in respect of liabilities of the insurer attributable to its long term business require the appointment of a special manager of the insurer's long term business, he may apply to the Court, and the Court may on such application appoint a special manager of that business to act during such time as the Court may direct, with such powers, including any of the powers of a receiver or manager, as may be entrusted to him by the Court.
(4) Section 216(2) and (3) of the Companies Ordinance shall apply to a special manager appointed under subsection (3) as they apply to a special manager appointed under that section.
(5) The Court may, if it thinks fit and subject to such conditions (if any) as it may determine, reduce the amount of the contracts made by the insurer in the course of carrying on its long term business.
(6) The Court may, on the application of the liquidator, a special manager appointed under subsection (3) or the Insurance Authority, appoint an independent actuary to investigate the long term business of the insurer and to report to the liquidator, the special manager or the Insurance Authority, as the case may be, on the desirability or otherwise of that business being continued and on any reduction in the contracts made in the course of carrying on that business that may be necessary for its successful continuation.
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34
CAP. 41]
Insurance Companies
[1988 Ed.
(3) Where the value of the assets mentioned in either paragraph of subsection (2) exceeds the amount of the liabilities mentioned in that paragraph the restriction imposed by that subsection shall not apply to so much of those assets as represents the excess.
(4) In relation to the assets falling within either paragraph of subsec- tion (2) the creditors mentioned in section 200(1) and (2) of the Companies Ordinance (Cap. 32) shall be only those who are creditors in respect of liabilities falling within that paragraph; and any general meetings of creditors summoned for the purposes of that section shall accordingly be separate general meetings of the creditors in respect of the liabilities falling within each paragraph.
(5) Where under section 276(1) of the Companies Ordinance the Court orders any money or property to be repaid or restored to an insurer or any sum to be contributed to its assets then, if and so far as the wrongful act which is the reason for the making of the order related to assets representing a fund or funds maintained by the insurer in respect of its long term business, the Court shall include in the order a direction that the money, property or contribution shall be treated for the purposes of this Ordinance as assets of that fund or those funds and this Ordinance shall have effect accordingly.
Continuation of long term business of insurer in liquidation
46. (1) This section has effect in relation to the winding up of an insurer being a company carrying on long term business.
(2) The liquidator shall, unless the Court otherwise orders, carry on the long term business of the insurer with a view to its being transferred as a going concern to another insurer, whether an existing insurer or an insurer formed for that purpose; and, in carrying on that business as aforesaid, the liquidator may agree to the variation of any contracts of insurance in existence when the winding-up order is made but shall not effect any new contracts of insurance.
(3) If the liquidator is satisfied that the interests of the creditors in respect of liabilities of the insurer attributable to its long term business require the appointment of a special manager of the insurer's long term business, he may apply to the Court, and the Court may on such application appoint a special manager of that business to act during such time as the Court may direct, with such powers, including any of the powers of a receiver or manager, as may be entrusted to him by the Court.
(4) Section 216(2) and (3) of the Companies Ordinance shall apply to a special manager appointed under subsection (3) as they apply to a special manager appointed under that section.
(5) The Court may, if it thinks fit and subject to such conditions (if any) as it may determine, reduce the amount of the contracts made by the insurer in the course of carrying on its long term business.
(6) The Court may, on the application of the liquidator, a special manager appointed under subsection (3) or the Insurance Authority, appoint an inde- pendent actuary to investigate the long term business of the insurer and to report to the liquidator, the special manager or the Insurance Authority, as the case may be, on the desirability or otherwise of that business being continued and on any reduction in the contracts made in the course of carrying on that business that may be necessary for its successful continuation.
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