Commonwealth Consolidated Acts

INSURANCE ACT 1973 - SECT 62ZOE

  (1)   Despite anything else in this Subdivision, an Insurance Act statutory manager of a body corporate (the body corporate under management ) may not perform a function or exercise a power under section   62ZOD if:

  (a)   either or both of subsections   (2) and (3) apply; and

  (b)   the performance of the function or the exercise of the power is not for the purposes of:

  (i)   an act of the Insurance Act statutory manager under subsection   62ZOF(1); or

  (ii)   Part   3 or 4 of the Financial Sector (Transfer and Restructure) Act 1999 .

  (2)   This subsection applies if:

  (a)   the body corporate under management is not a general insurer; and

  (b)   the performance or the exercise would result in:

  (i)   the provision of services by the body corporate under management to a related body corporate of the body corporate under management; or

  (ii)   the provision of services by a related body corporate of the body corporate under management to the body corporate under management; or

  (iii)   subject to subsection   (4), the transfer of assets between the body corporate under management and another body corporate (otherwise than in the ordinary course of business); and

  (c)   the performance or the exercise is not required or permitted by a binding arrangement that was in existence immediately before the Insurance Act statutory manager started to be in control of the business of the body corporate under management; and

  (d)   the provision or transfer is not for fair value.

  (3)   This subsection applies if:

  (a)   the body corporate under management is an authorised NOHC of a general insurer; and

  (b)   the performance or the exercise requires using funds of the body corporate or a subsidiary of the body corporate to increase the level of capital of the general insurer to a specified level; and

  (c)   the shareholders of the body corporate have not agreed, by ordinary resolution, to that use of the funds.

  (4)   Treat the requirement in subparagraph   (2)(b)(iii) as not being met if:

  (a)   the body corporate under management is an authorised NOHC of a general insurer; and

  (b)   the transfer of assets mentioned in that subparagraph is a transfer of funds to increase the level of capital of the general insurer to a specified level; and

  (c)   the shareholders of the body corporate have agreed, by ordinary resolution, to that use of the funds.