63Distribution of shareholders’ capital

63 Distribution of shareholders’ capital

(1) A distribution of shareholders’ capital in relation to a statutory fund: (a) may only be made after the directors of the life company concerned have received the appointed actuary’s written advice as to the likely consequences of the proposed distribution; and (b) must not be made if: (i) the distribution would have the result that the prudential standards in relation to solvency would not be satisfied in relation to the fund; or (ii) the distribution would involve a contravention of a direction given by APRA under section 230B in relation to solvency. (2) Except with the approval of APRA, a distribution of shareholders’ capital in relation to a statutory fund must not be made if: (a) the distribution would have the result that the prudential standards in relation to capital adequacy would not be satisfied in relation to the fund; or (b) the distribution would involve a contravention of a direction given by APRA under section 230B in relation to capital adequacy. (3) Shareholders’ capital may only be distributed in the following ways: (a) by transfer to shareholders’ funds; (b) by transfer to another statutory fund of the company; (c) by distribution to owners of policies that provide for participating benefits.