§ (1) Where it is intended to amalgamate two or more assurance companies, or to transfer the assurance business of any class from one assurance company to another company, the directors of any one or more of such companies may apply to the court, 257 by petition, to sanction the proposed arrangement.
§ (2) The court, after hearing the directors and other persons whom it considers entitled to be heard upon the petition, may sanction the arrangement if it is satisfied that no sufficient objection to the arrangement has been established.
§ (3) Before any such application is made to the court—
- (a) notice of the intention to make the application shall be published in the "Gazette"; and
- (b) a statement of the nature of the amalgamation or transfer, as the case may be, together with an abstract containing the, material facts embodied in the agreement or deed under which the amalgamation or transfer is proposed to be effected, and copies of the actuarial or other reports upon which the agreement or deed is founded, including a report by an independent actuary, shall, unless the court otherwise directs, be transmitted to each policy holder of each company in manner provided by Section one hundred and thirty-six of the Companies Clauses Consolidation Act, 1845, for the transmission to shareholders of notices not requiring to be served personally: Provided that wherever either company carries on another class or other classes of assurance business in addition to the business of life assurance it shall not be necessary to transmit such statement to the policy holders of such companies or company other than life, endowment, sinking fund, or bond investment policy holders; and
- (c) the agreement or deed under which the amalgamation or transfer is effected shall be open for the inspection of the policy holders and shareholders at the offices of the companies for a period of fifteen days after the publication of the notice in the "Gazette."
§ (4) No assurance company shall amalgamate with another or transfer its business to another unless the amalgamation or transfer is sanctioned by the court in accordance with this Section.
§ Mr. CHURCHILLThe Amendments which I have to propose to this Clause are of a purely drafting character. The whole of Sub-section (4) is an Amendment introduced in the House of Lords upon the Motion of Lord Milner. The object is to make the Clause more clear.
§ Drafting Amendments made.
§ Amendment made:
§ In Sub-section (3), paragraph (b), at end, to add the words "nor in the case of a transfer to such policy holders if the business transferred is not life assurance business or bond investment business."