Insurance Act 1973

Subject to subsection (3), if the Federal Court has made an order placing a general insurer under judicial management:

at the time the judicial management commences:

a person with the powers and functions of an officer of the general insurer immediately before that time ceases to have those powers and functions; and

if the general insurer is a foreign general insurer and there is a person with the powers and functions of an agent of the general insurer for the purposes of section 118 immediately before that time—the person ceases to have those powers and functions; and

the judicial manager appointed by the Court starts to have the powers and functions mentioned in subparagraph (i) (and, if applicable, subparagraph (ii)); and

while the general insurer is under judicial management:

if a person mentioned in subparagraph (a)(i) or (ii) purports to act in relation to the general insurer’s business, the purported act is invalid and of no effect; and

the judicial manager has the powers and functions of the members of the board of directors of the general insurer (collectively and individually), including the board’s powers of delegation.

Subsection (1) does not remove an officer or agent of the general insurer from office.

A general insurer may not issue policies without the leave of the Federal Court if the company is under judicial management.

This section and other provisions relating to judicial management do not apply to the aspects described in subsection 62ZVA(1) of the business and management of a foreign general insurer.

In this section, officer has the same meaning as it has in the Corporations Act 2001.