Section 24
Section 24
(1)
No insurer shall –
(a)
pay any dividend on its shares until all its capitalised expenditure
(including preliminary expenses, organisation expenses, share selling commission, brokerage, amounts of losses incurred, and any other item of expenditure not represented but tangible assets) have been completely written off;
(b)
grant an advance, loan, credit facility, or financing facility, against the security of its own shares;
(c)
except in such circumstances and in such amounts as the Authority may allow, grant an advance, loan, credit facility or financing facility –
(i)
to any of its directors, other than an advance or a loan secured by a policy of insurance held by that director;
(ii)
to a firm in which it or any of its directors has any interest as partner, manager or agent, or to an individual for whom or a firm for which any of its directors is a guarantor;
(iii)
to a company in which any of its directors owns 20 per cent or more of the voting shares;
(iv)
to a company in which the insurer owns 20 per cent or more of the voting shares;
(v)
to a company which owns 20 per cent or more of the voting shares of the insurer; and
(vi)
to a company in which a company mentioned in subparagraph
(v)
owns 20 per cent or more of the voting shares;
(d)
except in such circumstances and in such amounts as the Authority may allow, grant to any person other than its employee or any person mentioned in paragraph
(c)
, an unsecured advance, unsecured loan, unsecured credit facility or unsecured financing facility;
(e)
except in such circumstances as the Authority may allow, act as guarantor of an advance, loan, credit facility or financing facility granted to any person, firm or company mentioned in paragraph (c); or
Incorporating amendments until S 1/2016
(Clean copy) NANI/H.AFIF/fiqah _ as of 3rd July 2020
26
BLUV as at 14th January 2016
(f)
except with the approval of the Authority, pledge, mortgage, or charge any of its assets or securities.
(2)
All the directors of the insurer shall be liable jointly and severally to indemnify the insurer against any loss arising from the making of an unsecured advance, unsecured loan, unsecured credit facility or unsecured financing facility.
(3)
For the purpose of subsection (1), “director” shall be deemed to include the wife, husband, father, mother, son and daughter of a director.
(4)
For the purposes of this section and of section 25, “unsecured advance”,
“unsecured loan”, “unsecured credit facility” and “unsecured financing facility” mean respectively –
(a)
an advance, loan, credit facility or financing facility made without security; or
(b)
in the case of an advance, loan, credit facility or financing facility made with security, any portion of the advance, loan, or credit facility which at any time exceeds –
(i)
the market value of the assets constituting the security; or
(ii)
the value of the assets constituting the security assessed on a basis approved by the Authority where he is satisfied that there is no established market value.
(5)
Any person who fails to comply with this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000, and in the case of a continuing offence to a further fine not exceeding $10,000 for every day during which the offence continues after conviction.
Incorporating amendments until S 1/2016
(Clean copy) NANI/H.AFIF/fiqah _ as of 3rd July 2020
27
BLUV as at 14th January 2016
Disclosure of interest by directors.