73.
| (1) If at any time it appears to be expedient that the affairs of an insurer in respect of and class of insurance business comprised in the undertaking of the insurer should be wound up. but that any other class of insurance business comprised in the undertaking should continue to be carried on by the insurer, or be transferred to such an institution as may be declared by the Minister by notification published in the Gazette, a scheme for such purpose may be prepared and submitted for confirmation of the District Court in accordance with the provisions of this Act. |
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| (2) Any scheme prepared under this section shall provide for the allocation and distribution of the assets and liabilities of the insurer between any classes of insurance business effected (including the allocation of any surplus assets which may arise on the proposed winding up), for any future rights of every class of policy holders in respect of their policies and for the manner of winding up of any of the affairs of the insurer which are proposed to be wound up. and may contain provisions for altering the memorandum of the insurer with respect to its objects and such further provisions as may be expedient for giving effect to the scheme. |
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| (3) The provisions of this Act relating to the valuation of liabilities of insurers in liquidation and to the applications of surplus assets of the Long Term Insurance Fund in liquidation, shall apply to the winding up of any part of the affairs of an insurer, in accordance with the scheme under this section in like manner as they apply in 'the winding up of an insurer, and any scheme under this section in relation to a company may apply with the necessary modifications to any of the provisions of the Companies Act, No. 17 of 1982 relating to the winding up of companies. |
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| (4) An order of the District Court confirming a scheme under this section whereby, the memorandum of that company is altered with respect to its objects, shall as respects the alteration, have effect as if it were an order confirmed under section 7 of the Companies Act, No. 17 of 1982, and the provisions of that section shall apply accordingly. |
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| (5) When making an order confirming a scheme under this section, the District Court may make such orders as it considers necessary for the disposal of so much of the deposit made by the insurer under section 21 or section 53, as does not relate to the classes of insurance business, if any. which the insurer continues to carry on. |
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Sri Lanka Consolidated Acts