Document ID: chunk:federal_register_of_legislation:C2004A04724:body:0:p3
Version: federal_register_of_legislation:C2004A04724
Segment Type: other
Provision Reference: 
Character Range: 5645–8444

of its outstanding claims provision as at the end of its last preceding financial year;

        whichever is the greatest; or";

     (b) by omitting paragraph (b) of component B of the formula appearing in subsection (6A) and substituting the following paragraph:

      "(b) if the share-issuing body is not incorporated in Australia:

             (i) $2,000,000; or

             (ii) 20% of its premium income in Australia during its last preceding financial year; or

             (iii) 15% of its outstanding claims provision as at the end of its last preceding financial year;

         whichever is the greatest; and".

Inquiry by Commissioner and directions relating to certain assets

5. Section 51 of the Principal Act is amended by omitting paragraph (1)(b) and substituting the following paragraph:

  "(b) by notice in writing served on the body corporate direct:

         (i) that it not dispose of, or otherwise deal with or remove from Australia, any asset of the body corporate; or

         (ii) that it not dispose of, or otherwise deal with or remove from Australia, any asset of the body corporate that is, or that is of a kind that is, specified in the notice; or

         (iii) that it deal with any asset of the body corporate, or any asset of the body corporate that is, or that is of a kind that is, specified in the notice, on such terms and conditions as are specified in the notice;

     during such period after service of the notice, not exceeding 6 months, as is specified in the notice.".

Principal banker

6. Section 119 of the Principal Act is amended by omitting subsection (3).

Application of amendments—section 33 of the Principal Act

7. The amendments made by section 4 apply to a valuation of the assets of a body corporate at any time during:

     (a) the third of the first 3 financial years of the body corporate commencing after 6 January 1992; or

  (b) any subsequent financial year of the body corporate.

Application of amendment—section 51 of the Principal Act

8. The amendment made by section 5 does not affect any direction in force under section 51 of the Principal Act immediately before this section commences.

Transitional—phasing-in of asset valuation requirements

  9.(1) In this section:

"amended Act" means the Principal Act as amended by this Act;

"insurance company" means a body corporate authorised under the Insurance Act 1973 to carry on insurance business;

"interim year", in relation to an insurance company, means the third of the first 3 financial years of the insurance company commencing after 6 January 1992.

(2) Section 33 of the amended Act applies to an insurance company in relation to the interim year of that insurance company as if:

     (a) a reference in that section to $2,000,000 were a reference