Section 13

(1)

The Authority may, at the request of the takaful operator or on any of the grounds set out in subsection (2L cancel the registration of any takaful operator either wholly or in respect of any class of business, as the case may be.

(2)

The grounds referred to in subsection ( 1) are -

(a)

that the takaful operator is pursuing objects or carrying on operations containing any element which is contrary to Hukum Syara ';

(b)

that the takaful operator has not commenced business within one year after being registered;

(c)

that the takaful operator has ceased to carry on takaful business in respect of any class of business;

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{d) that the takaful operator has failed to maintain a surplus of assets over liabilities required by section lO(l){b);

{e) that the takaful operator has neglected or refused to observe an order of the Authority to make good any deficiency, whenever its takaful fund may have become impaired;

{f) that the takaful operator proposes to make, or has made, any composition or arrangement with its creditors or has gone into liquidation or has been wound up or otherwise dissolved;

{g) that the takaful operator is carrying on its business in a manner likely to be detrimental to the interest of its participants;

{h) that the takaful operator is unable to meet its obligations;

{i) that the takaful operator has failed to effect satisfactory re-takaful arrangements;

{j) that the takaful operator is contravening or has contravened any provision of this Order or of the regulations, or any condition imposed or any direction given by the Authority under this Order;

{k) that any officer of the takaful operator holding a managerial or executive position has been convicted of an offence under this Order;

{l)

that the takaful operator has furnished false, misleading or inaccurate information, or has concealed or failed to disclose material facts, in its application for registration; or

{m) that it is in the public interest to cancel the registration.

(3)

The Authority shall, before cancelling the registration of a takaful operator under this section otherwise than at the request of the takaful operator, cause to be given to the takaful operator notice in writing of his intention to do so, specifying a date, not less than 14 days after the date of the notice, upon which the cancellation will take effect and calling upon the takaful operator to show cause to the Authority why the registration should not be cancelled.

(4)

Notwithstanding that the registration of a takaful operator has been cancelled under this section, so long as the takaful operator remains under any liability in respect of Brunei Darussalam certificates belonging to the class of takaful business to which the registration relates, the takaful operator shall take such action as it considers necessary or as may be required by the Authority to ensure that reasonable provision has been or will be made in respect of that liability and that adequate arrangements exist or will exist for payment in Brunei

Darussalam of contributions and claims on those certificates.

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(5)

When the Authority cancels a registration under subsection (1), he shall forthwith inform the takaful operator of the cancellation.

(6)

Any takaful operator whose registration has been cancelled may, within 30 days of being informed in writing of the cancellation, appeal to the Minister whose decision thereon shall be final.

(7)

A cancellation made by the Authority shall not take effect until 14 days after the takaful operator has been informed in writing of such cancellation.

Report

Read on from s 14

Part IV

Read on from Part IV

Section 13

Terms defined in s 2

Part IV

Schedules