HC Deb 24 November 1909 vol 13 cc258-9

The court may order the winding up of an assurance company, in accordance with the Companies Consolidation Act, 1908, and the provisions of that Act shall apply accordingly, subject, however, to the following modification:—

The company may be ordered to be wound up on the petition of ten or more policy holders owning policies of an aggregate value of not less than ten thousand pounds;

Provided that such a petition shall not be presented except by the leave of the court, and leave shall not be granted until a primâ facie case has been established to the satisfaction of the court and until security for costs for such amount as the court may think reasonable has been given.

Mr. HAY

moved to add, at the end of the Clause, the words: "Provided further that no part of the capital or other assets of the company shall be released from liability in respect of assurance contracts until it has been proved to the satisfaction of the court that the assurance funds of the company are sufficient to meet the liability under assurance contracts in full."

Mr. CHURCHILL

I am advised that the whole process of the winding up of assurance companies is provided for in the Companies Consolidation Act by rules made by the Lord Chancellor. Therefore it is not necessary to make provision of the character which the hon. Member desires. The hon. Member's Amendment is entirely foreign to the general matter of the Clause, because it purports to provide for the administration of the assets of an assurance company in the winding up, and that is quite thoroughly, and I think drastically, dealt with under the Companies Consolidation Act.

Question, "That those words be there inserted," put, and negatived.

Clauses 17 to 23 inclusive agreed to.