Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A distribution of shareholders' capital in relation to a statutory fund:
(a) may only be made after the directors of the life company concerned have received the appointed actuary's written advice as to the likely consequences of the proposed distribution; and
(b) must not be made if:
(i) the distribution would have the result that the prudential standards in relation to solvency would not be satisfied in relation to the fund; or
(ii) the distribution would involve a contravention of a direction given by APRA under section 230B in relation to solvency.
(2) Except with the approval of APRA, a distribution of shareholders' capital in relation to a statutory fund must not be made if:
(a) the distribution would have the result that the prudential standards in relation to capital adequacy would not be satisfied in relation to the fund; or
(b) the distribution would involve a contravention of a direction given by APRA under section 230B in relation to capital adequacy.
(3) Shareholders' capital may only be distributed in the following ways:
(a) by transfer to shareholders' funds;
(b) by transfer to another statutory fund of the company;
(c) by distribution to owners of policies that provide for participating benefits.