Div 7Investigations by Commissioner.

Division 7.—Investigations by Commissioner. Commissioner may demand Information. S. Africa, s. 28. 54. The Commissioner may demand in writing from any company information relating to any matter in connexion with its business. Power to make Investigation. Imp. Act 1923, s. 17. S. Africa, s 29. 55.—(1.) If it appears to the Commissioner that— (a) a company is, or is likely to become, unable to meet its obligations; (b) a valuation made in pursuance of Division 5 of this Part discloses that the amount of a statutory fund of a company is less than the amount of the liabilities of the company in respect of that statutory fund; (c) a company has failed to comply with any provisions of this Act; (d) a company has not, within a period of one month as from a date upon which the Commissioner demanded from it in writing any information which the Commissioner was entitled under this Act to demand from it, furnished that information fully and satisfactorily: V. 4778, s. 18. (e) the rate of expense of procuring, maintaining and administering any life insurance business of a company in relation to the income derived from premiums is unduly high; (f) the method of apportionment of income or expenditure of a company among any classes of life insurance business or between life insurance business and any other business is inequitable; or (g) any information in the possession of the Commissioner calls for an investigation into the whole or any part of the life insurance business of the company, the Commissioner may serve on the company a notice in writing calling upon it to show cause, within such period, not less than fourteen days from the date of the notice, as is specified in the notice, why he should not, on the grounds so specified, investigate the whole or any part of the business of the company or appoint a person (in this Division referred to as “the Inspector”) to make such an investigation and report to the Commissioner the results of his investigation. (2.) If the company fails, within the period specified in the notice, to show cause to the satisfaction of the Commissioner, the Commissioner may make the investigation or may cause it to be made by the Inspector. Power to obtain information. S. Africa, s. 29. 56.—(1.) In making an investigation under this Division, the Commissioner or the Inspector— (a) may require the company to produce any securities, books, accounts, documents or statistics of the company for his inspection and to allow him to make such extracts from them as he deems fit; (b) may examine on oath or affirmation, in relation to the company’s business, any person who is, or has at any time been, a director, auditor, officer, agent, servant or shareholder of the company or the owner of a policy issued by the company or the personal representative of the owner; and (c) for the purpose of the last preceding paragraph, may administer oaths or take affirmations. (2.) A person specified in paragraph (b) of the last preceding sub-section shall produce to the Commissioner or the Inspector at his request any securities, books, accounts, documents or statistics of the company which are available to him and shall give to the Commissioner or the Inspector, at his request, any information in his possession relating to the business of the company. Penalty: Fifty pounds. (3.) A person so specified shall not refuse to be sworn or to make an affirmation or to give information on his examination on oath or affirmation, and shall not, in reply to a request made under the last preceding sub-section, give any false information. Penalty: Fifty pounds Persons to observe secrecy. Income Tax Assessment Act, s. 16. 57.—(1.) A person shall not either directly or indirectly, except, in the performance of any duty under this Act, make a record of, or divulge or communicate to any person, any information acquired by him under this Division. (2.) A person performing any duty under this Division shall take an oath or make a declaration, in the manner and form prescribed, to maintain secrecy in conformity with the provisions of this section. Penalty: One hundred pounds or imprisonment for six months. Action after completion of Investigation. Imp. Act 1923, s. 17. V. 4773, s. 13. S. Africa, s. 29 (7). 58.—(1.) After an investigation under this Division in respect of any company has been completed— (a) the Commissioner shall transmit to the company a summary of the conclusions arrived at by him as a result of the investigation; and (b) the Commissioner may, without affecting any powers conferred by Division 8 of this Part, issue such directions in writing to the company, in respect of its life insurance business, as he thinks necessary or proper to deal with the situation disclosed in those conclusions and, in particular, a direction that the company shall not issue any further policies (other than paid up policies as required by this Act). (2.) No direction issued to a company under this section shall remain in force for more than twelve months, but nothing in this sub-section shall prevent the Commissioner from issuing any further direction to the company. (3.) An appeal shall lie to the Court against any direction issued under this section. (4.) On any such appeal, the Court may confirm, disallow or vary the direction.