Document ID: chunk:federal_register_of_legislation:C2025C00135:section:63
Version: federal_register_of_legislation:C2025C00135
Segment Type: section
Provision Reference: s 63
Character Range: 167486–168853

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.

Part 6—Financial management of life companies etc.

Division 1—Preliminary