Conversion of South African Special Risks Insurance Association Act, 1998 (Act No. 134 of 1998)7. Reserves |
| 1) | Within six months after the conversion of SASRIA into a public company, the Minister must determine- |
| a) | the percentage of the Company's current reserves which is essential for the Company to do its main business as a short-term insurer for special risks or as a short-term reinsurer for special risks; and |
| b) | the percentage of those reserves which is not essential for that purpose. |
| 2) | Before making a determination in terms of subsection (1), the Minister must- |
| a) | consult with the board of directors of the Company; and |
| b) | take into the result of an independent actuarial assessment obtained by the Minister for the purposes of that subsection. |
| 3) | While the State is the sole member of, and sole shareholder in, the Company, the Minister- |
| a) | may declare a dividend to be paid from any excess reserves determined in terms of subsection (1)(b); and |
| b) | must use the proceeds of that dividend to reduce state debt. |