Insurance Act, 2017 (Act No. 18 of 2017)

Chapter 9 : Resolution

Part 4 : Winding-up

58. Winding-up applications and resolutions
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(1) The Prudential Authority may make an application under the Companies Act for the winding-up of an insurer or a controlling company, if the Prudential Authority reasonably believes that it is in the interests of the policyholders of that insurer or, in the case of a controlling company, it is in the interests of policyholders of the insurers that are part of the insurance group to do so.

 

(2)
(a) If an application to the court for or in respect of the winding-up of an insurer or a controlling company is made by any person other than the Prudential Authority—
(i) the application may not be heard unless copies of the notice of motion and of all accompanying affidavits and other documents filed in support of the application are lodged with the Prudential Authority at least 14 days, or such shorter period as the court may allow on good cause shown, before the application is set down for hearing; and
(ii) the Prudential Authority may, if the Prudential Authority reasonably believes that the application is contrary to the interests of the policyholders of the insurer concerned or, in the case of a controlling company, the interests of policyholders of the insurers that are part of the insurance group, join the application as a party and file affidavits and other documents in opposition to the application.
(b) The court may only grant an order relating to the winding-up of an insurer or a controlling company if the Prudential Authority has been notified of the application as required in paragraph (a)(i).

 

(3)
(a) Any resolution of an insurer or a controlling company to begin winding-up proceedings is subject to the approval of the Prudential Authority.
(b) An insurer or a controlling company may file a resolution under section 80 of the Companies Act only after the Prudential Authority has approved the resolution.
(c) The Prudential Authority must grant or refuse an application for approval of a resolution within 14 days of the date on which the application was submitted to the Prudential Authority, or such longer period agreed between the Prudential Authority and the applicant.
(d) If the Prudential Authority requested additional information in terms of section 60(4)(a)(i), then the period between the date on which the additional information was requested and when the information was provided to the Prudential Authority is not considered when determining the 14 days referred to in paragraph (c).
(e) Any resolution of an insurer or a controlling company that is not approved by the Prudential Authority under paragraph (a) or (b) is void.

 

(4) Despite the provisions of the Companies Act, the appointment of a trustee or a liquidator is subject to the approval of the Prudential Authority.

 

(5) Despite the provisions of the Companies Act, if the Prudential Authority does not approve a resolution referred to in subsection (3)(a) or (b), or the appointment referred to in subsection (4), the Prudential Authority may apply to court to place that person under curatorship in terms of the Financial Institutions (Protection of Funds) Act.