Sri Lanka Consolidated Acts Sri Lanka Consolidated ActsRestrictions on dividends and bonuses
| 29. No insurer who or which carries on the business of life assurance in Ceylon shall, for the purposes of declaring or paying any dividend to shareholders or any bonus to policy holders of the company, if such insurer is a company, or of making any payment in service of any debentures, loans or advances on account, utilize directly or indirectly any portion of the life assurance fund or of the funds of such other class or sub-class of insurance business, as the case may be, except a surplus shown in the valuation balance sheet as in Form H as set forth in the Fourth Schedule submitted to the Controller as part of the abstract referred to in section 37 as a result of an actuarial valuation of the assets and liabilities of the insurer; and such surplus shall not be increased by contributions out of any reserve fund or otherwise unless such contributions have been brought in as revenue through the revenue account applicable to life assurance business on or before the date of the valuation aforesaid, except when the reserve fund is made up solely of transfers from similar surpluses disclosed by valuation in respect of which returns have been submitted to the Controller under section 37 of this Act: Provided that payments made out of any such surplus in service of any debentures, loans or advances on account shall not exceed ninety per centum of such surplus including any payment by way of interest on the debentures, loans or advances on account, and interest paid on the debentures, loans or advances on account shall not exceed ten per centum of any such surplus except when the interest paid on the debentures, loans or advances on account is offset against the interest credited to the fund concerned in deciding the interest basis adopted in the valuation disclosing the aforesaid surplus. |