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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 in

dustrial 5 accordingly a separate deposit shall be made in respect of that business as required by section two of that Act.

companies. (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

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 :-
(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”:
(6) 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-

shall be furnished to the Commissioner :
(d) The
Commissioner may

refuse to issue a
warrant for a deposit under section two of the


A.D. 1923.

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 (6)
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 :
(9) 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 assurance business in like manner as if such transfer

a transfer of the industrial assurance business,

40 Prohibition

12. An industrial assurance company shall not after of charges 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 fund.






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. 5 13. The provisions of this Act shall have effect Act to have notwithstanding anything in the memorandum or articles effect not

withstanding of association or special Act of any industrial assurance company :

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.
15 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 twenty-
six 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.

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. 16.-(1) If, in the case of any collecting society or

industrial assurance company, in the opinion of the Com-
missioner 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

(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 fornier 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. Provisions 17.-(1) In the case of a collecting society or as to valua- industrial assurance company, the following provisions tions.

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;

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(6) 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
sbown :

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

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