Div 1Preliminary

Division 1—Preliminary

Insurance and guarantee business.

10. (1) The Corporation shall carry on the business of insurance, being insurance under contracts which the Corporation is empowered to enter into under this Part.

(2) The Corporation shall also carry on the business of giving guarantees and indemnities which it is empowered to give under this Part.

11. (1) The Board shall keep the Minister informed of the decisions of the Board with respect to matters of policy in relation to the conduct of the Corporation’s business under this Part.

(2) Before adopting a policy (including an altered policy) with respect to a matter included in any of the following subjects, namely:—

(a) the classes of contracts of insurance into which the Corporation will enter;

(b) the nature of the risks that may be covered under contracts of insurance with the Corporation;

(c) the undertaking of liabilities in relation to trade with particular countries;

(d) the giving of guarantees; and

(e) the entering into of contracts of indemnity,

the Board shall submit the policy for the approval of the Minister, and the Board shall not adopt the policy without the approval of the Minister, or, except during such time as the Minister permits, continue to pursue the policy where the Minister, having approved the policy, subsequently withdraws his approval.

(3) If the Board fails to obtain the Minister’s approval to a policy with respect to a matter included in a subject specified in paragraph (2)(a), (b), (c), (d) or (e) or the Minister withdraws his approval of a policy with respect to such a matter, the Board shall endeavour to reach agreement with the Minister as to the policy to be adopted by the Board with respect to that matter and, in the event of agreement not being reached within a time which the Minister considers reasonable, the Minister may, by writing under his hand, determine a policy to be adopted by the Board with respect to that matter, and the Board shall adopt that policy.

(4) Nothing in this section shall be construed—

(a) as requiring the approval of the Minister to the Corporation entering into a particular contract of insurance or a particular contract of indemnity, or to the Corporation giving a particular guarantee; or

(b) as empowering the Minister to determine that the Corporation shall or shall not enter into a particular contract of insurance or a particular contract of indemnity, or give a particular guarantee,

but the Corporation shall not enter into a particular contract of insurance or a particular contract of indemnity, or give a particular guarantee, contrary to a policy approved or determined by the Minister under this section.