Malaysia legislation
Section 65
of MALAYSIA DEPOSIT INSURANCE CORPORATION (AMENDMENT) ACT 2016
Section 65
New sections 131a and 131b
The principal Act is amended by inserting after section 131
the following sections:
“Continuation of family takaful business 131a. (1) Notwithstanding section 83 of this Act and paragraph 236(1)(a) of the Companies Act 1965, the liquidator of a takaful operator carrying on family takaful business—
(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.
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(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 131b. (1) Notwithstanding section 83 of this Act and paragraph 236(1)(a) of the Companies Act 1965, the liquidator of an insurance company carrying on life business—
(a)
may carry on the insurance company’s life business with a view to such business being transferred as a going concern to another insurance company but shall not effect a new policy; and
(b)
subject to subsection (3), may transfer the insurance company’s assets and liabilities to another insurance company or a bridge institution, including liabilities under life policies and Division 4 of Part VI of the Financial Services Act 2013 shall apply to the transfer.
(2)
The insurance company’s assets and liabilities referred to in subsection (1) are the assets and liabilities of the insurance 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 life policies of the insurance company; or
Malaysia Deposit Insurance Corporation (Amendment)
(b)
the amount of its other liabilities, and the High Court may reduce the liabilities to the extent necessary taking into consideration the value of the insurance company’s available assets subject to such conditions as the
High Court considers fit.”.
Amendment of section 132