Insurance Companies Act 1982 (repealed)

3 (1) This paragraph applies where either—

(a) paragraph 1 above applies and the Secretary of State is entitled to serve a notice of objection under the relevant section; or

(b) paragraph 2 above applies;

and in this paragraph expressions which are also used in paragraph 1 or 2 above have the same meanings as in that paragraph.

(2) If, in a case falling within sub-paragraph (1)(a) above, the Secretary of State considers that, if certain conditions were complied with—

(a) by the person serving the notice under subsection (1)(a) of the relevant section; or

(b) where the notice is under section 60(1)(a) above, by the person proposed to be appointed as managing director or chief executive,

the criteria of sound and prudent management would continue to be or, as the case may be, would be fulfilled in respect of the company, he may, instead of serving a notice of objection under the relevant section, serve a notice requiring the conditions in question to be complied with by that person (“the person concerned").

A notice under this sub-paragraph shall be served—

(a) on the person concerned, and

(b) where that person is proposed to be appointed as managing director or chief executive, on the company.

(3) If, in a case falling within sub-paragraph (1)(b) above, the Secretary of State considers that,if certain conditions were complied with—

(a) by the person in breach; or

(b) where the contravention is of section 60(1)(a) above, by the person appointed as managing director or chief executive,

the criteria of sound and prudent management would continue to be or, as the case may be, would be fulfilled in respect of the company, he may, instead of serving a notice of objection under paragraph 2 above, serve a notice requiring the conditions in question to be complied with by that person (“the person concerned").

A notice under this sub-paragraph shall be served—

(a) on the person concerned, and

(b) where that person has been appointed as managing director or chief executive, on the company.

(4) Before serving a notice under sub-paragraph (2) or (3) above, the Secretary of State shall serve on the person concerned and, where that person is proposed to be or has been appointed as managing director or chief executive, on the company a preliminary written notice stating—

(a) that the Secretary of State is considering serving a notice under that sub-paragraph;

(b) the conditions which would be required by such a notice to be complied with by the person concerned;

(c) the criteria of sound and prudent management which he considers would not be fulfilled in respect of the company if he served neither such a notice nor a notice of objection under subsection (1)(a) of the relevant section or, as the case may be, paragraph 2 above; and

(d) that the person on whom the preliminary notice is served may, within the period of one month from the date of service of that notice—

(i) make written representations to the Secretary of State; and

(ii) if that person so requests, oral representations to an officer of the Department of Trade and Industry appointed for the purpose by the Secretary of State.

(5) Where representations are made in accordance with this paragraph the Secretary of State shall take them into consideration before serving a notice under sub-paragraph (2) or (3) above.

(6) The Secretary of State shall not be obliged to disclose—

(a) to the person concerned; or

(b) where that person is proposed to be or has been appointed as managing director or chief executive, to the company,

any particulars of the ground on which he is considering the service of a notice under sub-paragraph (2) or (3) above or a notice of objection under the relevant section or, as the case may be, paragraph 2 above.