Singapore legislation
Clause 32
Clause 32
Schemes for transfer of business
(1)
The whole or part of the insurance business of an insurer registered under this Act may be transferred to another insurer registered in respect of the class or classes of business to be transferred, if the transfer is effected by a scheme under this section, but shall not be transferred except by such a scheme:Provided that —
this subsection shall not apply to the transfer of any insurance business of a company incorporated or established outside Singapore, except in so far as it relates to Singapore policies; and
no scheme shall transfer any insurance business of a society registered under the Co-operative Societies Ordinance (Cap. 175) except to another society so registered, nor transfer to such a society any business except that of another.
(2)
Any insurer registered under this Act, not being a company incorporated or established outside Singapore, shall by virtue of this section have power to make such a transfer by a scheme under this section, and the directors shall have authority on behalf of the insurer to arrange for and do all things necessary to give effect to such a transfer; and this subsection shall apply notwithstanding the absence of that power or authority under the constitution of the insurer or any limitation imposed by its constitution on its powers or on the authority of its directors.
(3)
A scheme under this section may provide for the business in question to be transferred to a body not registered as an insurer under this Act in respect of the relevant class of business (including a body not yet in existence), if the scheme is so framed as to operate only in the event of the body becoming so registered.
(4)
A scheme under this section for the transfer of any insurance business may extend to the transfer with it of any other business, not being insurance business, where the other business is carried on by the insurer as ancillary only to the insurance business transferred.
(5)
A scheme under this section may include provision for matters incidental to the transfer thereby effected, and provision for giving effect to that transfer, and in particular —
for any property, rights or liabilities of the transferor (including assets comprised in a deposit under this Act or in an insurance fund) to vest, by virtue of the scheme and without further or other assurance, in the transferee; and
for the registration by the transferee of policies transferred, for the amounts to be included in respect of those policies in the transferee’s insurance fund and for other matters arising under this Act out of the transfer.
(6)
A scheme under this section shall be of no effect unless confirmed by the High Court, but may be prepared and submitted for confirmation to the High Court by any of the insurers concerned; and if so confirmed, the scheme shall have effect according to its tenor notwithstanding anything in the foregoing sections of this Act and be binding on any person thereby affected.