Document ID: chunk:federal_register_of_legislation:C2025C00135:section:188
Version: federal_register_of_legislation:C2025C00135
Segment Type: section
Provision Reference: s 188
Character Range: 345894–347042

188  Liability of directors for loss to statutory fund
 (1) If:
 (a) a life company contravenes this Act in relation to a statutory fund; and
 (b) the contravention results in a loss to the statutory fund; and
 (c) either:
 (i) the Court orders that the company be wound up; or
 (ii) for a company that is a friendly society referred to in subsection 180(2)—the members of the society have passed a special resolution that the society be wound up;
the persons who were the directors of the company when the contravention occurred are jointly and severally liable to pay to the company an amount equal to the amount of the loss.
 (2) A person is not liable under subsection (1) if the person proves that he or she used due diligence to prevent the occurrence of such a contravention.
 (3) On application by the liquidator of the company, the Court may order any person liable under subsection (1) to pay to the company the whole or any part of the loss.
 (4) A person cannot be made liable both under this section and under Division 2 of Part 4 in respect of the same contravention.

Part 9—Transfers and amalgamations of life insurance business