Part XXIV Insolvency
Voluntary winding up
366 Insurers effecting or carrying out long-term contracts or insurance.
1
An insurer effecting or carrying out contracts of long-term insurance may not be wound up voluntarily without the consent of the Authority.
2
If notice of a general meeting of such an insurer is given, specifying the intention to propose a resolution for voluntary winding up of the insurer, a director of the insurer must notify the Authority as soon as practicable after he becomes aware of it.
3
A person who fails to comply with subsection (2) is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.
4
The following provisions do not apply in relation to a winding-up resolution—
a
sections 378(3) and 381A of the M1Companies Act 1985 (“the 1985 Act”); and
b
Articles 386(3) and 389A of the M2Companies (Northern Ireland) Order 1986 (“the 1986 Order”).
5
A copy of a winding-up resolution forwarded to the registrar of companies in accordance with section 380 of the 1985 Act (or Article 388 of the 1986 Order) must be accompanied by a certificate issued by the Authority stating that it consents to the voluntary winding up of the insurer.
6
If subsection (5) is complied with, the voluntary winding up is to be treated as having commenced at the time the resolution was passed.
7
If subsection (5) is not complied with, the resolution has no effect.
8
“Winding-up resolution” means a resolution for voluntary winding up of an insurer effecting or carrying out contracts of long-term insurance.