159Order for judicial management on other grounds

#### 159 Order for judicial management on other grounds (1) On an application under section 157, the Court may make an order that a life company, or part of the business of a life company, be placed under judicial management if the Court is satisfied: (a) that: (i) in the absence of external support, the company is, or is likely to become, unable to meet its policy or other liabilities as they become due; or (ii) the company has failed to comply with the prudential standards in relation to solvency; or (iii) the company has failed to comply with a direction under section 230B in relation to solvency; or (iiia) an external administrator has been appointed to a holding company of the company (or a similar appointment has been made in a foreign country in respect of such a holding company), and the requirement in subsection (2) is satisfied; or (iiib) if the company is an eligible foreign life insurance company—an application for the appointment of an external administrator of the eligible foreign life insurance company, or for a similar procedure in respect of the eligible foreign life insurance company, has been made in a foreign country; or (iiic) if the company is an eligible foreign life insurance company—an external administrator has been appointed to the eligible foreign life insurance company, or a similar appointment has been made in respect of the eligible foreign life insurance company, in a foreign country; or (iv) there are reasonable grounds for believing that the financial position or management of the company may be unsatisfactory; and (b) that the time needed to make or complete an investigation of the life insurance business of the company under Division 3 of Part 7 would be likely to be such as to prejudice the interests of owners of policies issued by the company. (2) For the purposes of subparagraph (1)(a)(iiia), the requirement in this subsection is that the appointment mentioned in that subparagraph poses a significant threat to: (a) the operation or soundness of the life company; or (b) the interests of owners of policies issued by the life company; or (c) the stability of the financial system in Australia. (3) The regulations may specify that a particular form of support for a company is not to be considered external support for the purposes of subparagraph (1)(a)(i).