Singapore legislation
Clause 30
Clause 30
Special provision for insurers directed to cease insurance business
(1)
Where the Commissioner gives an insurer a direction under subsection (2) of section 28 of this Act, the affairs of the insurer may be wound up by the Court under the Companies Ordinance as if it had suspended its business for a whole year or, in the case of a winding up under Part IX of that Ordinance, as if it had ceased to carry on business.
(2)
Where the Commissioner gives an insurer a direction as aforesaid but, on a petition for the affairs of the insurer to be wound up by the Court, the Court is satisfied that the insurer will be able to pay its debts in full within twelve months or such longer period as the Court thinks reasonable, the Court may (if it thinks fit) order the affairs of the insurer to be wound up only as regards the insurance fund maintained for the class of business to which the direction relates.
(3)
An order made under subsection (2) of this section for a limited winding up shall be of the same effect as an order for the affairs of the insurer to be wound up generally, except in so far as this section otherwise provides.
(4)
Where such an order is made, the powers of the liquidator shall be exercisable only for the purpose of applying the assets of the relevant insurance fund (including the deposit under this Act) in discharging the liabilities to which they are applicable, together with the costs, charges and expenses incurred in the winding up; but the insurer shall from time to time, as the Court may direct, make such additions to those assets as are required to secure that they are sufficient for the purpose or shall, if the Court so directs, discharge any of those liabilities out of other assets.
(5)
In the winding up of the affairs of an insurer under such an order, the Companies Ordinance (Cap. 174) shall have effect subject to the following modifications: —
section 160 (or, as the case may be, section 296) and other sections so far as they relate to contributories shall not apply;
section 170 shall apply after, as it applies before, the making of the winding up order, and section 175 shall not apply; and
sections 171, 172, 217, 256 to 260, 272 and 273 shall not apply.
(6)
Where such an order is made, the Court may at any time, on the application of the liquidator or of any person who might petition for the affairs of the insurer to be wound up, substitute an order for the affairs of the insurer to be wound up generally, and give such directions as the Court thinks fit as to matters in progress under the previous order; and, subject to any such directions, the winding up shall for all purposes connected with the substituted order be deemed to have commenced at the time of the application for that order.