SANCTION OF COURT REQUIRED FOR TRANSFERS OF LONG TERM BUSINESS (Hansard, 17 July 1973)

§ Mr. Anthony Grant
I beg to move Amendment No. 46, in page 22, line 19, after 'Gazettes', insert: 'and, except where the court has otherwise directed, in two national newspapers'. I understand that it will also be convenient to take with this amendment, Amendment No. 19, in page 22, line 19, after 'Gazettes' insert: 'and such other newspapers as the Court may direct'. This amendment deals with the substance of Amendment 19, which would require application to the court for a direction as to the newspapers in which notice concerning a scheme to transfer long-term business is to be published in addition to the London and Edinburgh Gazettes. I thought it preferable to relieve the court of making a decision in regard to such publication in every case by requiring as standard procedure notice in two national newspapers. If the companies concerned thought that some other form of notice would be more suitable in a particular case they could apply to the court for a direction to adopt that as an alternative. I hope that this substantially meets the point raised by the hon. Member for Glasgow, Craigton (Mr. Millan), which was a useful one. I commend the amendment.

§ Mr. Millan
I am grateful to the Minister for tabling Amendment No. 46, which substantially meets the objectives 391 of Amendment No. 19 and is, of course, acceptable.

§ Mr. Anthony Grant
I beg to move Amendment No. 20, in page 23, line 39, leave out 'Subsection (1) above' and insert: 'Subsection (7) above does not apply to a transfer of long term business carried on elsewhere than in Great Britain but, save as aforesaid, this section'. Clause 26 was amended in Committee so as to extend its provisions to the long-term business carried on overseas of insurance companies to which the 1958 Act applies since such a transfer might indirectly affect the interests of United Kingdom policy holders. However, I am advised that the drafting of the Committee amendment was defective and Amendment No. 20 is intended to correct it.
The effect of the amendment is to remove the mandatory provision of subsection (7) of the clause while retaining the permissive provisions of subsection (1) to transfers of long-term business carried on elsewhere than in Great Britain. This will mean that, while not obliged to seek the sanction of the British court for the transfer of overseas long-term business, a transferor company to which the Act applies may, if it so desires, seek that sanction.