Insurance Order, 2006 · As enacted
43. Disqualification of managing director, director etc.
Official textFrom Attorney General's Chambers, unchanged
Ill Without prejudice to anything contained in the Companies Act
(Chapter 391, any person who is a managing director, director, chief executive or principal officer or controller of an insurer shall cease to hold office -
principal officer
"principal officer" means a person, by whatever designation called, appointed by an insurer and charged with the responsibility of managing the affairs of the insurer;
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(a} if he has been adjudicated bankrupt;
(b} if he assigns his estate for the benefit of his creditors or makes an arrangement with his creditors pursuant to any law relating to bankruptcy;
{cJ if he is convicted of any offence involving dishonesty or fraud; or
{ dJ if he becomes insane.
No person who is a managing director, director, chief executive or principal officer or controller or any member of their immediate family, of an insurer shall hold shares or other interests in a company that carries on business of an insurance broker.
insurance broker
"insurance broker" means any company who, for compensation as an independent contractor, in any manner solicits, negotiates or procures insurance or the renewal or continuance thereof on behalf of an insured other than himself;
For the purpose of subsection (2), "member of their immediate family"
includes the wife, husband, father, mother, son and daughter of a managing director, director, chief executive or principal officer or controller.
Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000, imprisonment for a term not exceeding one year or both.
Terms defined in s 2
insurance broker
Defined · s 2"insurance broker" means any company who, for compensation as an independent contractor, in any manner solicits, negotiates or procures insurance or the renewal or continuance thereof on behalf of an insured other than himself;
principal officer
Defined · s 2"principal officer" means a person, by whatever designation called, appointed by an insurer and charged with the responsibility of managing the affairs of the insurer;