Special Provisions as to Industrial Assurance Companies. A.D. 1923.

11.-(1) Industrial assurance business shall, for the Application. purposes of the Assurance Companies Act, 1909, be of Act of treated as a separate class of assurance business, and 1909 to in5 accordingly a separate deposit shall be made in respect of that business as required by section two of that Act.

(2) In relation to industrial assurance business, anything which under the Assurance Companies Act, 1909, is required or authorised to be done to, by, or with the 10 Board of Trade or the President of the Board of Trade shall or may be done to, by, or with the Commissioner and the provisions of that Act shall have effect accordingly:

Provided that, where the company transacts other 15 business besides that of industrial assurance business, nothing in this subsection shall affect the powers and duties of the Board of Trade or the President of the Board of Trade under the said Act in relation to that other class of business; and where any document required 20 under the said Act to be sent to the Board of Trade relates both to industrial assurance business and to other assurance business, the document shall be sent both to the Commissioner and to the Board of Trade.

(3) In its application to industrial assurance business 25 the Assurance Companies Act, 1909, shall have effect subject to the following modifications:

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35

40

(a) The provisions relating to life assurance business
shall apply also to industrial assurance business
with the substitution of references to "industrial
assurance business " and " the industrial assurance
fund" for references to "life assurance business"
and "the life assurance fund":

on

(b) Where any expenses of management, or interest
or dividends from investments, or sums
account of depreciation of securities, are appor-
tioned between the industrial assurance business
and any other business transacted by the
company the auditor shall include in his report
a special report as to the propriety or other-
wise of the apportionment:

(c) A copy of every report of the auditor of the com-
pany shall be furnished to the Commissioner:
(d) The Commissioner may refuse to issue a
warrant for a deposit under section two of the

dustrial

assurance

companies.

A.D. 1923.

Prohibition

of charges

said Act if he considers that it is inexpedient
that the company should be authorised to carry
on industrial assurance business, but in the case
of such refusal the company may appeal to the
court, and the Commissioner shall be entitled 5
to appear and be heard on any such appeal:
(e) On a petition under section thirteen of the said
Act (which relates to the amalgamation of
companies and the transfer of business from
one company to another) the Commissioner 10
shall be entitled to be heard, and on any such
hearing the Commissioner may apply to the
court to exercise its powers under paragraph (b)
of subsection (3) of that section of directing
that the requirements of that paragraph shall 15
be dispensed with or modified:

(f) On any such petition, any class of persons
(including employees of any company concerned)
who allege that they are adversely affected by
the amalgamation or transfer, shall be entitled 20
to appear and to be heard:

(g) The independent actuary referred to in para-
graph (b) of subsection (3) of the said section
thirteen shall be appointed by the President
of the Institute of Actuaries on the application 25
of the Commissioner and shall make his report
to the Commissioner, by whom copies thereof
shall be sent to each company concerned in the
amalgamation or transfer, and each such com-
pany shall, unless the court otherwise directs, 30
transmit copies thereof to the owner of each
policy of the company in manner provided by
that section:

(h) The said section thirteen shall apply to any
transfer from one company to another, howsoever 35
effected, of the liabilities or of any of the
liabilities arising in respect of industrial assur-
ance business in like manner as if such transfer
were a transfer of the industrial assurance
business.

12. An industrial assurance company shall not after the commencement of this Act issue any debentures or on industrial debenture stock, or raise any loan, charged or purporting to be charged on any assets of the company in which the

assurance

fund.

40

5

industrial assurance fund is invested, and any such charge A.D. 1923. shall be void:

Provided that this section shall not apply to a temporary bank overdraft.

13. The provisions of this Act shall have effect Act to have notwithstanding anything in the memorandum or articles effect notwithstanding of association or special Act of any industrial assurance company:

memo

randum,.

Provided that nothing in this Act shall affect the articles or 10 liability of the industrial assurance fund or of the life special Act. assurance fund in the case of a company established before the commencement of this Act to the prejudice of persons interested in contracts entered into by the company before that date.

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Accounts, Returns, Inspection, Valuations, Meetings.

14.-(1) A copy of every balance sheet of a collecting Balance society shall, during the seven days next preceding the sheets and meeting at which the balance sheet is to be presented, be audit. kept open by the society for inspection at every office at 20 which the business of the society is carried on, and shall be delivered or sent by post to any member or person interested in the funds of the society, on demand.

(2) The audit of accounts required by section twentysix of the Friendly Societies Act, 1896, shall, in the case 25 of a collecting society, be made by a public auditor appointed under that Act, and if such accounts have not been so audited, the provisions of section twenty-seven of that Act requiring an annual return of the receipts, expenditure, funds and effects of the society as audited 30 shall be deemed not to have been complied with.

returns.

15.-(1) The Commissioner, after considering any Annual representations made by or on behalf of the society or accounts and company affected, may, if it appears to him that any account, return, or balance sheet sent by a collecting 35 society or an industrial assurance company in pursuance of the Friendly Societies Act, 1896, or the Assurance Companies Act, 1909, is in any particular incomplete or incorrect, or does not comply with the requirements of the Act applicable to the case, reject the account, return, 40 or balance sheet and give such directions as he thinks necessary for the variation thereof.

(2) Where any direction so given entails a consequential alteration of any account, return, or balance sheet sent by an industrial assurance company to the Board of

A.D. 1923. Trade, it shall be the duty of the company to make such consequential alteration therein.

Inspection.

Provisions

tions.

16.-(1) If, in the case of any collecting society or industrial assurance company, in the opinion of the Commissioner there is reason to believe that an offence against 5 this Act or against the Friendly Societies Act, 1896, or the Assurance Companies Act, 1909, has been, or is likely to be committed, the Commissioner or any inspector appointed by him for the purpose shall have power to examine into and report on the affairs of the society or 10 company, and for that purpose may exercise in respect of the society or company all or any of the powers given by subsection (5) of section seventy-six of the Friendly Societies Act, 1896, to an inspector appointed under that section.

15

(2) On himself holding such an inspection or on receiving the report of an inspector so appointed the Commissioner may issue such directions and take such steps as he considers necessary or proper to deal with the situation disclosed therein and in particular may 20 in the case of a society award that the society be dissolved and its affairs wound up, and in the case of a company may present a petition to the court for the winding up of the company.

(3) The Commissioner may, if he considers it just, 25 direct that all or any of the expenses of and incidental or preliminary to an inspection under this section shall be defrayed out of the funds of the society or company, or by the officers or former officers, or members or former members of the committee of management or board of 30 directors of the society or company, or any of them in such proportions as the Commissioner directs and sums directed by him to be so paid shall be recoverable by him summarily as a civil debt.

(4) This section shall come into operation on the 35 passing of this Act.

17.-(1) In the case of a collecting society or as to valua- industrial assurance company, the following provisions shall have effect with regard to every valuation made as at the thirty-first day of December, nineteen hundred and 40 twenty-four, or any later date:

(a) The valuation shall be made by an actuary as defined by the Assurance Companies Act, 1909, as modified by this Act;

(b) The basis of valuation adopted shall be such as to A.D. 1923.
place a proper value upon the liabilities, regard
being had to the mortality experience among
the persons whose lives have been assured in the
society or company, to the average rate of
interest from investments and to the expenses
of management (including commission), and
shall be such as to secure that no policy shall be
treated as an asset;

(c) The report containing the abstract of the result
of the valuation required by section twenty-eight
of the Friendly Societies Act, 1896, to be sent
shall be sent by a collecting society to the Com-
missioner within twelve months after the close of
the period to which the valuation relates, and
shall contain a statement as to how the values of
stock exchange securities (if any) included in the
balance sheet are arrived at, and a certificate,
signed by the same persons as sign the balance
sheet, to the effect that in their belief the assets
set forth in the balance sheet are in the aggregate
fully of the value stated therein less any invest-
ment reserve fund taken into account;
(d) Where the balance sheet of a society or company
includes amongst the assets thereof any sums
representing expenses of organisation or exten-
sion, or the purchase of business or good will,
and the amount of the assets, exclusive of such
sums (after deducting debts due by the society
or company other than debentures and loans),
is less than the amount of the industrial
assurance fund, or, as the case may be, of the
several assurance and insurance funds as shown
in that balance sheet, the amount of the
industrial assurance fund shown in the valua-
tion balance sheet shall be reduced by the
amount of the deficiency, or, as the case may
be, by a sum bearing such proportion to that
deficiency as the amount of the industrial
assurance fund shown in the first-mentioned
balance sheet bears to the aggregate amount
of all the assurance and insurance funds so
shown:

Provided that in the cases hereinafter mentioned
this paragraph shall, during such periods as are
hereinafter mentioned, apply to societies and
companies subject to such relaxations of the