§ Mr. Sandelsonasked the Secretary of State for Trade whether he will make a statement on the decision of the Nation Life Insurance Company to apply to the court for the appointment of a liquidator.
§ Mr. ShoreNation Life is a subsidiary of the Stern Group of property companies. On 30th June the directors announced a six months' moratorium on surrenders of their property bonds for which the contracts make provision and a suspension of the quoted unit price of the property fund. After discussion with my Department the company has now decided to petition the court for a compulsory winding up.
As a consequence of a change in control of the company my Department by virtue of Section 12(4)(b) of the Insurance Companies Amendment Act 1973 issued a notice on 3rd September 1973 imposing certain requirements on the company. The company was prohibited in particular from subscribing for shares in, making loans or selling assets to, or purchasing debts from associated persons including other companies in the group and was required to place with a trustee assets equal to 100 per cent. of its net domestic liabilities, and to submit quarterly returns to the Department.
In May the company became seriously concerned about the value of some of the properties which it holds as backing for its property bonds and other life' assur-
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Commodity Description Price at end of June 1974 Copper … … Wirebars, London Metal Exchange settlement price … £884 tonne Lead … … London Metal Exchange settlement price … … £229 tonne Zinc … … European producers' price … … £330 tonne Tin … … London Metal Exchange settlement price … … £3620 tonne Aluminium … … Ingots, Canadian producers' price … … £316.5 tonne Nickel … … Refined, Canadian producers' price … … £1511 tonne Raw wool … … Merion 64's … … 215p kilo Raw cotton … … 11/16" … … 57.5d kilo Raw jute … … White 'C' grade … … £171.5 ton Natural rubber … … No. 1 R.S.S … … £31.5p kilo Beef … … Eire hindquarters … … 35.0p lb Lamb … … New Zealand (including duty) … … 25.8p lb Bacon … … Danish A1 … … £650 ton Wheat … … US Dark Northern Springs … … £89.3 ton Maize … … No. 3 American Yellow … … £61.0 ton Coffee … … Ugandan Robustas Type 2 3 months futures … … £529 tonne Cocoa … … Accra/Lagos 3 months futures … … £730 tonne Tea … … Average price at London tea sales … … 58.3p kilo Palm oil … … Malaysian nearest futures … … £256 ton Soya beans … … US No. 2 nearest futures … … £99.3 tonne ance policies. My Department has been in daily touch with the company and since the Alexander Howden Group withdrew its offer to purchase the company, Nation Life has undertaken no new contracts of insurance.
Under Section 31 of the Insurance Companies Amendment Act 1973 it will be the duty of the liquidator, unless the court otherwise orders, to carry on the long-term business of the company with a view to its being transferred as a going concern to another new or existing company. Some leading insurance companies have given assurances that they will give the liquidator every assistance in carrying out this obligation and that, depending on the circumstances, there could be some degree of financial support towards meeting the company's contractual obligations to the ordinary life assurance policy holders of the company if this should prove necessary.