Section 107: Sanction of the court for business transfer schemes
208.This section sets out the conditions that must be met before the court may sanction a business transfer scheme. The conditions are that the transferee firm has obtained any necessary certificates, which are set out in Schedule 12, and also that court is satisfied that the firm will have the necessary authorisation to carry on that business after the transfer (unless no authorisation is required, as may be the case for some reinsurance undertakings in other territories).
209.The precise requirements imposed under the Schedule will depend on a number of factors including whether the business in question is insurance or banking business, and the location of the business (that is whether it is domiciled in the United Kingdom, another EEA member State or overseas).
210.An insurance business will require:
a certificate about confirming that it has the necessary margin of solvency (paragraph 2 of the Schedule); and
a certificate indicating that a host State regulator - in cases involving risks or firms located in another EEA member State - has consented (or failed to object within 3 months) to the transfer (paragraphs 3 to 5).
211.In the case of a bank it will need to produce:
a certificate confirming that the bank has adequate resources; and
in the case where either the transferor or transferee company is domiciled in another EEA state, a certificate confirming that the home state regulator has been informed about the transfer.
212.In deciding whether to sanction the scheme, the court must consider whether it is appropriate, in all the circumstances, to do so.
