Insurance Order, 2006 · s 25

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25.
Disclosure of interest by directors
( 1)
Every director of an insurer who in any manner whatsoever has an interest, whether directly or indirectly, in an advance, loan, credit facility or financing facility from that insurer shall as soon as practicable make to the insurer a declaration in writing as to the nature and extent of his interest, and the insurer shall within 7 days of its receipt furnish copies of that declaration to the
Authority, its auditor, and all its directors.
(2)
For the purpose of subsection (1), a general notice given to the board of directors of an insurer by a director to the effect that he has an interest in a specified enterprise, undertaking, firm or company and that he is to be regarded as having an interest in an advance, loan, credit facility or financing facility which may, after the date of the notice, be granted to that enterprise, undertaking, firm or company shall be deemed to be sufficient declaration of interest in relation to the advance, loan, credit facility or financing facility so granted if -
{a)
it specifies the nature and extent of his interest in that enterprise, undertaking, firm or company; and
{b) at the time the advance, loan, credit facility or a financing facility is made, his interest is not different in nature or greater in extent than had been specified in the notice.
(3)
Every director of an insurer who holds any office or possesses any property whereby, whether directly or indirectly, a duty or an interest may arise in conflict with his duty or interest as such the director shall declare at a meeting of the directors of the insurer the fact, nature and extent of the conflict which may arise.
(4)
A declaration referred to in subsection (3) shall be made at the first meeting of the directors held -
1017
(a)
after the person becomes a director of the insurer; or
(b)
if already a director, after the person commenced to hold offi.ce or to possess the property whereby the conflict may arise.
(5)
The secretary to the board of directors of the insurer shall cause any declaration made or notice given under this section to be read at the next meeting of the directors after the declaration was made or the notice was given, and he shall record the same in the minutes of that meeting.
(6)
Any director or secretary to a board of directors who acts in contravention of this section shall be guilty of an offence and shall be liable on conviction to a fi.ne not exceeding $20,000, imprisonment for a term not exceeding 3 years, or both.
Submission of statement and liquidation of transaction by insurer.

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s 25Disclosure of interest by directors

( 1)

Every director of an insurer who in any manner whatsoever has an interest, whether directly or indirectly, in an advance, loan, credit facility or financing facility from that insurer shall as soon as practicable make to the insurer a declaration in writing as to the nature and extent of his interest, and the insurer shall within 7 days of its receipt furnish copies of that declaration to the

Authority, its auditor, and all its directors.

(2)

For the purpose of subsection (1), a general notice given to the board of directors of an insurer by a director to the effect that he has an interest in a specified enterprise, undertaking, firm or company and that he is to be regarded as having an interest in an advance, loan, credit facility or financing facility which may, after the date of the notice, be granted to that enterprise, undertaking, firm or company shall be deemed to be sufficient declaration of interest in relation to the advance, loan, credit facility or financing facility so granted if -

{a)

it specifies the nature and extent of his interest in that enterprise, undertaking, firm or company; and

{b) at the time the advance, loan, credit facility or a financing facility is made, his interest is not different in nature or greater in extent than had been specified in the notice.

(3)

Every director of an insurer who holds any office or possesses any property whereby, whether directly or indirectly, a duty or an interest may arise in conflict with his duty or interest as such the director shall declare at a meeting of the directors of the insurer the fact, nature and extent of the conflict which may arise.

(4)

A declaration referred to in subsection (3) shall be made at the first meeting of the directors held -

1017

(a)

after the person becomes a director of the insurer; or

(b)

if already a director, after the person commenced to hold offi.ce or to possess the property whereby the conflict may arise.

(5)

The secretary to the board of directors of the insurer shall cause any declaration made or notice given under this section to be read at the next meeting of the directors after the declaration was made or the notice was given, and he shall record the same in the minutes of that meeting.

(6)

Any director or secretary to a board of directors who acts in contravention of this section shall be guilty of an offence and shall be liable on conviction to a fi.ne not exceeding $20,000, imprisonment for a term not exceeding 3 years, or both.

Submission of statement and liquidation of transaction by insurer.