Insurance Act, 2017 (Act No. 18 of 2017)Chapter 6 : Financial SoundnessPart 1Financially sound condition38. Capital and securities |
| (1) | An insurer or controlling company that is a profit company, or an insurer that is a co-operative whose constitution provides for membership shares to be issued to members, may not, without the approval of the Prudential Authority— |
| (a) | authorise any additional shares, convert shares from one type to another type of shares or repurchase any of its shares; |
| (b) | issue securities other than shares; |
| (c) | reduce its share capital; |
| (d) | allow a subsidiary to directly or indirectly acquire shares in it; or |
| (e) | conclude a transaction contemplated in section 45 (loans or other financial assistance to directors) of the Companies Act. |
| (2) | The Prudential Authority may prescribe the circumstances in which approval under subsection (1) is not required. |