C1Part II Regulation of Insurance Companies
Winding up
C254 Winding up on petition of F2Treasury.
C31
The F2Treasury may present a petition for the winding up, in accordance with F3Part 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 F3123 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the company has failed to satisy an obligation to which it is or was subject by virtue of this Act or any enactment repealed by this Act or by the M1Insurance Companies Act 1974; or
F4bb
that the company is a UK company and has failed to satisfy an obligation to which it is subject by virtue of any provision of the law of another EEA State which—
i
gives effect to the general or long term insurance Directives; or
ii
is otherwise applicable to the insurance activities of the company in that State;
c
that the company, being under the obligation imposed by F5sections 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 F2TreasuryF6areunable to ascertain its financial position.
C32
The F2Treasury may present a petition for the winding up, in accordance with the F7Part 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
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the company has failed to satisfy an obligation to which it is or was subject by virtue of this Act or any enactment repealed by this Act or by the M2Insurance Companies Act 1980; or
F10bb
that the company is a UK company and has failed to satisfy an obligation to which it is subject by virtue of any provision of the law of another EEA State which—
i
gives effect to the general or long term insurance Directives; or
ii
is otherwise applicable to the insurance activities of the company in that State;
c
that the company, being under an obligation imposed by F11Articles 229 to 231 of theF12Part 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 F2TreasuryF6are unable to ascertain its financial position;
C33
In any proceedings on a petition to wind up an insurance company presented by the F2Treasury 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.
C34
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 F14Insolvency Act 1986 or, as the case may be, the F15Insolvency (Northern Ireland) Order 1989, it appears to the F2Treasury that it is expedient in the public interest that the company should be wound up, F16the Treasury 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.
F174A
The Secretary of State may exercise the powers conferred on the Treasury by subsections (1) to (4) above, and for this purpose those subsections shall be construed as if references to the Treasury were references to the Secretary of State.
Pt. II (ss. 15-71) restricted (1.1.1993) by S.I. 1992/3218, reg65
Pt. II (ss. 15-71) extended (24.12.1996) by S.I. 1996/3011, reg. 3(1)(b), 10(1)