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

Chapter 9 : Resolution

Part 4 : Winding-up

59. Winding-up of trusts referred to in section 41
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(1)
(a) Despite the Trust Property Control Act, 1988 (Act No. 57 of 1988), item 9 of Schedule 5 to the Companies Act shall, subject to this section and with the necessary changes, apply in relation to the winding-up of a trust referred to in section 41, to the exclusion of Trust Property Control Act, 1988, and in such application the Prudential Authority is deemed to be the person authorised under the Companies Act to make an application to the court for the winding-up thereof.
(b) The Prudential Authority may make an application under the Companies Act for the winding-up of a trust referred to in section 41, if the Prudential Authority reasonably believes that it is in the interests of the policyholders of a branch of a foreign reinsurer or Lloyd’s underwriters to do so.
(c) If an application to the court for or in respect of the winding-up of a trust referred to in section 41 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 branch of a foreign reinsurer or Lloyd’s underwriters concerned, join the application as a party and file affidavits and other documents in opposition to the application.
(d) The court may only grant an order relating to the business rescue of an insurer or a controlling company if the Prudential Authority has been notified of the application as required in paragraph (c)(i).

 

(2)
(a) Any decision of a trustee or any other person to dissolve a trust referred to in section 41, must be approved by the Prudential Authority.
(b) Any decision referred to in paragraph (a) not approved by the Prudential Authority is void.