INSURANCE (SPECIAL PROVISIONS) ACT

Arrangement of Sections

1. Short title.

PART I

ESTABLISHMENT OF SUBSIDIARY CORPORATIONS AND INDEPENDENT CORPORATIONS

2. Incorporation Order for the establishment of a subsidiary corporation.

3. Incorporation Order for the establishment of an independent corporation.

PART II

PROVISIONS APPLICABLE TO SUBSIDIARY AND INDEPENDENT CORPORATIONS

4. Provisions of this Part to apply to subsidiary and independent corporations.

5. The seal of the Corporation.

6. The general control of the corporation vested in the Board of Directors.

7. Members of the corporation.

8. Board of Directors.

9. Remuneration of Directors.

10. Chairman of the Board of Directors.

11. Procedure at meetings of the Board.

12. Acts not invalidated by vacancy.

13. Capital of the corporation.

14. Division of the capital into shares and the allotment.

15. Register of shareholders.

16. Fund of the corporation.

17. Functions of the corporation.

18. Powers of the corporation.

19. Contracts of the corporation.

20. Staff of the corporation.

21. Repealed.

22. Persons authorised to act on behalf of corporation.

23. Receipts.

24. Provisions of management services.

25. Profits of a corporation.

26. Powers of the Minister.

27. Power of the Minister to call for information.

28. Application of the provisions of the Companies Ordinance.

29. Indemnity of directors, officers and servants.

30. Regulations.

31. Officers and servants of the corporation deemed to be public servants.

32. Corporation deemed to be scheduled institution within the meaning of the Bribery Act.

33. Interpretation.

PART III

MISCELLANEOUS

34. Dissolution of subsidiary corporation.

35. Dissolution of an independent corporation.

36. Application of the provisions of Public Corporations (Financial Control) Act to a subsidiary corporation.

37. Financial year of a subsidiary corporation.

38. Application of the provisions of Public Corporations (Financial Control) Act to an independent corporation.

39. Financial year of an independent corporation.

40. Interpretation.

22 of 1979,

44 of 1986.

AN ACT to provide for the establishment of subsidiary corporations of the insurance corporation established by the Insurance Corporation Act and other independent corporations, to carry on the business of any description of insurance specified in the incorporation order; and to make provision for matters connected therewith or incidental thereto.

[Date of Commencement: 19th April, 1979]

1. Short title.

This Act may be cited as the Insurance (Special Provision) Act.

PART I

ESTABLISHMENT OF SUBSIDIARY CORPORATIONS AND INDEPENDENT CORPORATIONS

2. Incorporation Order for the establishment of a subsidiary corporation.

(1) Where the Minister considers it desirable that the right to carry on the business of any description of insurance should be extended to any other insurer in addition to the Insurance Corporation, he may with the approval of the Government by Order (hereinafter referred to as the "Incorporation Order”) published in the Gazette

(a) declare that a subsidiary corporation of the Insurance Corporation be established for the purpose of carrying on the business of insurance of any description as may be specified in such Order;

(b) assign a corporate name to the subsidiary corporation;

(c) determine the initial capital of the subsidiary corporation, which shall not exceed such amount as shall have been approved by Parliament;

(d) state the principal place of business of the subsidiary corporation;

(e) fix the number of members of the Board of Directors of the subsidiary corporation;

(f) appoint the members of the Board of the subsidiary corporation in accordance with the provisions of section 8;

(g) appoint one of the members of the Board as its Chairman.

(h) appoint the date on which the subsidiary corporation shall commence business.

(2) Upon the publication of the Incorporation Order in the Gazette, a subsidiary corporation consisting of the persons who are for the time being members thereof by virtue of section 7, with the corporate name specified in such Order and with perpetual succession, shall be deemed to have been established.

(3) A subsidiary corporation may sue and be sued in its corporate name.

(4) The amount of the initial capital of a subsidiary corporation shall be paid to such corporation out of the funds of the Insurance Corporation in such installments as the Minister may with the concurrence of the Minister in charge of the subject of Finance determine.

3. Incorporation Order for the establishment of an independent corporation.

(1) Where the Minister considers it desirable that an independent corporation should be established, in addition to the Insurance Corporation and its subsidiaries, to carry on the business of any description of insurance as specified in the Incorporation Order, he may with the approval of the Government by Order (hereinafter referred to as "the Incorporation Order”) published in the Gazette

(a) declare that an independent corporation be established for the purpose of carrying on the business of insurance of any description as may be specified in such Order;

(b) assign a corporate name to such independent corporation;

(c) determine the initial capital of the independent corporation which shall not exceed such amount as shall have been approved by Parliament;

(d) state the principal place of business of such independent corporation;

(e) fix the number of members of the Board of Directors of such independent corporation;

(f) appoint the members of the Board of such independent corporation in accordance with the provisions of section 8;

(g) appoint one of the members of the Board as its Chairman;

(h) appoint the date such independent corporation shall commence business.

(2) Upon the publication of the Incorporation Order in the Gazette, an independent corporation consisting of the persons who are for the time being members thereof by virtue of section 7, with the corporate name specified in such Order and with perpetual succession, shall be deemed to have been established.

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