Insurance Companies Act — I-11.8 1006
Application 1006 (1) This section applies only in respect of an insurance holding company (a) that has been notified by the Superintendent that this section applies to it where the insurance holding company is subject to measures designed to protect the interests of depositors, policyholders and creditors of any federal financial institution affiliated with it, which measures are contained in a prudential agreement entered into under section 1002 or an undertaking given by the insurance holding company to the Superintendent; or (b) that is the subject of a direction made under section 1003, or an order made under subsection 992(3). Information to be provided (2) An insurance holding company shall provide the Superintendent with the name of (a) each person who has been nominated for election or appointment as a member of its board of directors, (b) each person who has been selected by the insurance holding company for appointment as a senior officer, and (c) each person who is newly elected as a director of the insurance holding company at a meeting of shareholders and who was not proposed for election by anyone involved in the management of the insurance holding company, together with such other information about the background, business record and experience of the person as the Superintendent may require. When information to be provided (3) The information required by subsection (2) shall be provided to the Superintendent (a) at least 30 days prior to the date or proposed date of the election or appointment or within such shorter period as the Superintendent may allow; or (b) in the case of a person referred to in paragraph (2)(c), within 15 days after the date of the election of the person. Disqualification or removal (4) If the Superintendent is of the opinion that, on the basis of the competence, business record, experience, conduct or character of a person, he or she is not suitable to hold that position, the Superintendent may, by order, (a) in the case of a person referred to in paragraph (2)(a) or (b), disqualify the person from being elected or appointed as a director of an insurance holding company or from being appointed as a senior officer; or (b) in the case of a person referred to in paragraph (2)(c), remove the person from office as a director of the insurance holding company. Risk of prejudice (5) In forming an opinion under subsection (4), the Superintendent must consider whether the interests of the depositors, policyholders and creditors of any federal financial institution affiliated with the insurance holding company would likely be prejudiced if the person were to take office or continue to hold office, as the case may be. Representations may be made (6) The Superintendent must in writing notify the person concerned and the insurance holding company of any action that the Superintendent proposes to take under subsection (4) and must afford them an opportunity within 15 days after the date of the notice, or within any longer period that the Superintendent allows, to make representations to the Superintendent in relation to the matter. Prohibition (7) Where an order has been made under subsection (4) (a) disqualifying a person from being elected or appointed to a position, the person shall not be, and the insurance holding company shall not permit the person to be, elected or appointed to the position; or (b) removing a director from office, the person shall not continue to hold, and the insurance holding company shall not permit the person to continue to hold, office as a director. 2001, c. 9, s. 465