Document ID: chunk:federal_register_of_legislation:C2025C00157:section:104:p3
Version: federal_register_of_legislation:C2025C00157
Segment Type: section
Provision Reference: s 104 (pt 3/6)
Character Range: 411656–414204

APRA may give the general insurer or authorised NOHC a direction under subsection (1A) because one or more of the grounds referred to in that subsection have been satisfied in respect of the subsidiary.
 (1D) APRA cannot give a direction under subsection (1C) to a body corporate of a kind specified in regulations (if any) made for the purposes of this subsection.
 (1E) Subsections (1), (1A) and (1C) do not limit each other.

Requirements for direction
 (2) The direction must:
 (a) be given by notice in writing to the body corporate; and
 (b) specify:
 (i) in the case of a direction under subsection (1C)—the ground referred to in subsection (1A) as a result of which the direction is given; or
 (ii) otherwise—the ground referred to in subsection (1) or (1A) as a result of which the direction is given.

APRA may disregard external support
 (2A) In deciding whether to give a direction under subsection (1), (1A) or (1C) to a body corporate, APRA may disregard any external support for the body corporate.
 (2B) The regulations may specify that a particular form of support is not external support for the purposes of subsection (2A).

Contents of directions
 (3) The kinds of direction that the body corporate may be given are directions to do, or to cause a body corporate that is its subsidiary to do, any one or more of the following:
 (a) to comply with the whole or a part of this Act, regulations made under this Act, prudential standards, or the Financial Sector (Collection of Data) Act 2001;
 (b) to comply with a condition or direction referred to in paragraph (1)(c);
 (c) to order an audit of the affairs of the body corporate, at the expense of the body corporate, by an auditor chosen by APRA;
 (d) to remove a director or senior manager from office;
 (e) to ensure a director or senior manager of the body corporate does not take part in the management or conduct of the business of the body corporate except as permitted by APRA;
 (f) to appoint a person or persons as a director or senior manager of the body corporate for such term as APRA directs;
 (g) to remove any auditor of the body corporate from office and appoint another auditor to hold office for such term as APRA directs;
 (h) not to give financial accommodation to any person;
 (i) not to renew any policy;
 (j) not to borrow any amount;
 (k) not to accept any payment on account of share capital, except payments in respect of calls that fell due before the direction was given;
 (l) not to repay any amount paid on shares;
 (m) not to pay a dividend on any