Malaysia legislation
Section 131A
Section 131A
(a)
may carry on the takaful operator’s family takaful business with a view to such business being transferred as a going concern to another takaful operator but shall not effect a new takaful certificate; and
(b)
subject to subsection (3), may transfer the takaful operator’s assets and liabilities to another takaful operator or a bridge institution, including liabilities under family takaful certificates attributable to the first-mentioned takaful operator and the takaful funds managed by the first-mentioned takaful operator and Division 4 of Part VII of the
Islamic Financial Services Act 2013 shall apply to the transfer.
(2)
The takaful operator’s assets and liabilities referred to in subsection (1) are the assets and liabilities of the takaful fund and of the shareholders’ fund.
(3)
The liquidator may, for the purpose of a transfer under paragraph (1)(b), apply to the High Court for an order to reduce—
(a)
the amount of liabilities under family takaful certificates of the takaful operator; or
(b)
the amount of other liabilities of the takaful fund, and the High Court may reduce the liabilities to the extent necessary taking into consideration the value of available assets in the takaful funds and shareholders’ fund subject to such conditions as the High
Court considers fit.
Continuation of life business