Insurance Ordinance

(1)
Where it is proposed to carry out a scheme under which the whole or part of the
                long term business carried on in Hong Kong by
                an
                authorized insurer
                        (
the
                        transferor
                company
)
                is to be transferred to another insurer
                        (
the
                        transferee
                company
)
                the transferor company or transferee company may apply to the Court of First
                Instance, by petition, for an order sanctioning the scheme.
(Amended
12 of 2015 s. 2
)
(2)
The Court of First Instance shall not determine an application under this section unless the petition is accompanied by a report on the terms of the scheme by an independent actuary and the Court of First Instance is satisfied that the requirements of subsection (3) have been complied with.
(3)
The requirements referred to in subsection (2)
are—
(a)
that a notice has been published in the Gazette and, except where the Court of First Instance has otherwise directed, in an English language newspaper and a Chinese language newspaper (being in each case a newspaper specified in a list of newspapers approved by the Chief Secretary for Administration for the purposes of this section) stating that the application has been made and giving the address of the offices at which, and the period for which, copies of the documents mentioned in paragraph (d) will be available as required by that paragraph;
(Amended
34 of 1988 s. 4
;
44 of 1990 s. 5
;
L.N. 362 of 1997
)
(b)
except where the Court of First Instance has otherwise directed, that a
statement—
(i)
setting out the terms of the scheme; and
(ii)
containing a summary of the report mentioned in subsection (2) sufficient to indicate the opinion of the actuary on the likely effects of the scheme on the long term policy holders of the insurers concerned,
has been sent to each of those policy holders and to every member of those insurers;
(c)
that a copy of the petition, of the report mentioned in subsection (2) and of any statement sent out under paragraph (b)
                    has been served on the Authority and that a period of not less than 21 days has elapsed since the date of service;
(Amended
12 of 2015 s. 2
)
(d)
that copies of the petition and of the report mentioned in subsection (2) have been open to inspection at offices in Hong Kong of the insurers concerned or their representatives for a period of not less than 21 days beginning with the date of the first publication of a notice in accordance with paragraph (a).
(4)
Each of the insurers concerned shall furnish a copy of the petition and of the report mentioned in subsection (2) to any person who asks for one at any time before an order sanctioning the scheme is made on the petition.
(5)
On any petition under this
section—
(a)
the Authority; and
(Amended
12 of 2015 s. 2
)
(b)
any person (including any employee of the
                    transferor
                    company or the transferee company) who alleges that he would be adversely
                    affected by the carrying out of the scheme,
shall be entitled to be heard.
(6)
The Court of First Instance shall not make an order sanctioning the scheme unless it is satisfied that the transferee company is, or immediately after the making of the order will be, authorized to carry on any long term business to be transferred under the scheme.
(7)
No such transfer as is mentioned in subsection (1) shall be carried out unless the scheme relating to the transfer has been sanctioned by the Court of First Instance in accordance with this section; and no order shall be made under
section 673
or
675
of the Companies Ordinance (
Cap. 622
) in respect of so much of any compromise or arrangement as involves any such transfer.
(Amended
28 of 2012 ss. 912
& 920)
(8)
Any insurer which fails to comply with subsection (4) commits an offence and is liable to a fine at level 4.
(Amended
35 of 1996 s. 18
)