Insurance Companies Act 1982 (repealed)

54 Winding up on petition of Secretary of State. U.K.

(1) The Secretary of State may present a petition for the winding up, in accordance with [F1 Part IV or V of the Insolvency Act 1986], of an insurance company to which this Part of this Act applies, being a company which may be wound up by the court under the provisions of that Act, on the ground—

(a) that the company is unable to pay its debts within the meaning of sections [F1 123 or sections 222 to 224] of that Act;

(b) that the company has failed to satisy an obligation to which it is or was subject by virtue of this Act or any enactment repealed by this Act or by the M1 Insurance Companies Act 1974; or

[F2 (bb) that the company has failed to satisfy an obligation to which it is subject by virtue of any provision of the law of another member State giving effect to the general insurance Directives;]

(c) that the company, being under the obligation imposed by [F3 sections 221 and 222 of the Companies Act] with respect to the keeping of accounting records, has failed to satisfy that obligation or to produce records kept in satisfaction of that obligation and that the Secretary of State is unable to ascertain its financial position.

(2) The Secretary of State may present a petition for the winding up, in accordance with the [F4 Companies (Northern Ireland) Order 1986][F4 Part V or VI of the Insolvency (Northern Ireland) Order 1989], of an insurance company to which this Part of this Act applies, being a company which may be wound up by the court under the provisions of that Act, on the ground—

(a) that the company is unable to pay its debts within the meaning of F5 [F6 Articles 479 and 480 or Articles 616 to 619][F6 Article 103 or Articles 186 to 188] of that Order

(b) that the company has failed to satisfy an obligation to which it is or was subject by virtue of this Act or any enactment repealed by this Act or by the M2 Insurance Companies Act 1980; or

[F7 (bb) that the company has failed to satisfy an obligation to which it is subject by virtue of any provision of the law of another member State giving effect to the general insurance Directives;]

(c) that the company, being under an obligation imposed by F8 Articles 229 to 231 of the [F9 Companies (Northern Ireland) Order 1986][F9 Part V or VI of the Insolvency (Northern Ireland) Order 1989] with respect to the keeping of accounting records, has failed to satisfy that obligation or to produce records kept in satisfaction of that obligation and that the Secretary of State is unable to ascertain its financial position;

and [F10 Article 433 of the said Order of 1986] shall have effect in relation to such an insurance company as if any reference to the Department of Commerce for Northern Ireland were a reference to the Secretary of State.

(3) In any proceedings on a petition to wind up an insurance company presented by the Secretary of State under subsection (1) of (2) above, evidence that the company was insolvent—

(a) at the close of the period to which—

(i) the accounts and balance sheet of the company last deposited under section 22 above; or

(ii) any statement of the company last deposited under section 25 above,

relate; or

(b) at any date or time specified in a requirement under section 42 or 44 above,

shall be evidence that the company continues to be unable to pay its debts, unless the contrary is proved.

(4) If, in the case of an insurance company to which this Part of this Act applies, being a company which may be wound up by the court under the provisions of the [F11 Insolvency Act 1986] or, as the case may be, the [F12 Companies (Northern Ireland) Order 1986][F12 Insolvency (Northern Ireland) Order 1989], it appears to the Secretary of State that it is expedient in the public interest that the company should be wound up, he may, unless the company is already being wound up by the court, present a petition for it to be so wound up if the court thinks it just and equitable for it to be so wound up.

(5) Where a petition for the winding up of an insurance company to which this Part of this Act applies is presented by a person other than the Secretary of State, a copy of the petition shall be served on him and he shall be entitled to be heard on the petition.

Textual Amendments

F1 Words substituted by Insolvency Act 1986 (c. 45, SIF 66), s. 439(2), Sch. 14

F2 S. 54(1)(bb) inserted by S.I. 1990/1333, reg. 8(3)

F3 Words substituted by Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), s. 30, Sch. 2

F4 Words commencing “Part V or VI" substituted (prosp.) for words “Companies (Northern Ireland) Order 1986" by S.I. 1989/2405 (N.I. 19), arts. 1(2), 381(2), Sch. 9 para. 34(a)(i) (the latter words having previously been substituted by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II)

F5 Words substituted by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II

F6 Words “Article 103" to “188" substituted (prosp.) for words “Article 479" to “619" by S.I. 1989/2405 (N.I. 19), art. 1(2), 381(2), Sch. 9 para. 34(a)(ii)

F7 S. 54(2)(bb) inserted by S.I. 1990/1333, reg. 8(3)

F8 Words substituted by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II

F9 Words “Part" to “1989" substituted (prosp.) for words “Companies" to “1986" by S.I. 1989/2405 (N.I. 19), arts. 1(2), 381(2), Sch. 9 para. 34(a)(i)

F10 Words substituted by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II

F11 Words substituted by Insolvency Act 1986 (c. 45, SIF 66), s. 439(2), Sch. 14

F12 “Insolvency (Northern Ireland) Order 1989" substituted (prosp.) for “Companies (Northern Ireland) Order 1986" by S.I. 1989/2405 (N.I. 19), arts. 1(2), 381(2), Sch. 9 para. 34(b)(i) (the latter words having previously been substituted by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II)

Marginal Citations

M1 1974 c. 49.

M2 1980 c. 25.