Additional contents of a recapitalisation direction
103C Additional contents of a recapitalisation direction
A recapitalisation direction may direct a general insurer to issue:
shares, or rights to acquire shares, in the insurer; or
other capital instruments of a kind specified in the direction.
If the recapitalisation direction is a direction to a NOHC/NOHC subsidiary under subsection 103B(1B), the direction may direct the NOHC/NOHC subsidiary to do any of the following:
issue:
shares, or rights to acquire shares, in the NOHC/NOHC subsidiary; or
other capital instruments in the NOHC/NOHC subsidiary of a kind specified in the direction;
acquire:
shares, or rights to acquire shares, in the general insurer mentioned in subsection 103B(1A); or
other capital instruments in the general insurer mentioned in subsection 103B(1A) of a kind specified in the direction;
acquire:
shares, or rights to acquire shares, in a specified body corporate covered by subsection (1B); or
other capital instruments in a specified body corporate covered by subsection (1B), of a kind specified in the direction.
This subsection covers a body corporate if:
the body corporate is a subsidiary of the NOHC/NOHC subsidiary; and
the general insurer is a subsidiary of the body corporate.
Without limiting the generality of subsections (1), (1A) and (2), but subject to subsection (3), a direction referred to in those subsections may:
deal with some only of the matters referred to in those subsections; or
deal with a particular class or particular classes of those matters; or
make different provision with respect to different matters or different classes of matters.
A direction for the purposes of paragraph (1)(a) or subparagraph (1A)(a)(i), (1A)(b)(i) or (1A)(c)(i) may specify that the shares or rights must:
be of a kind specified in the direction; or
have the characteristics specified in the direction.
A direction for the purposes of paragraph (1)(b) or subparagraph (1A)(a)(ii), (1A)(b)(ii) or (1A)(c)(ii):
must not specify a kind of capital instrument unless that kind of capital instrument is specified in the regulations; and
may specify that the capital instruments must have the characteristics specified in the direction.
The statute text is free to read above. View subscription options to unlock the case-law research tools for each provision.