238TAIC 30 370ZARYA ARRANGEMENT OF CLAUSES.

Preamble.

1. Short Title of Act.

PART I.

EXISTING INSURANCE COMPANIES.
Registration.

2. Repeal of Section 2 of principal Act.

3. Compulsory Registration of certain Insurance Companies, 4. Permissive Registration of other Insurance Companies.

5. Provision as to mixed Company.

6. Penalty on Company not registering.

7. Condition precedent to Registration with Limited Liability.

8. Power of Board of Trade in certain Instances to modify Provisions with respect to existing Companies.

9. Registration under Joint Stock Companies Act not to affect Obligations incurred previously to Registration.

10. Saving of Liabilities of Persons holding Shares before Registration under Joint Stock Companies Act.

11. Continuation of existing Actions and Suits.

PART II.

FORMATION OF NEW INSURANCE COMPANIES.

12. New Insurance Companies.

PART III.

REGULATIONS APPLICABLE TO EXISTING AND FUTURE LIFE INSURANCE

COMPANIES.

13. Account to be made by Life Insurance Companies.

14. Copies of Accounts to be sent to every Shareholder or Member.

15. Penalty on Company making Default with respect to Accounts.

A

BILL

FOR

The Incorporation and Regulation of Insurance

W

Companies.

HEREAS by the Joint Stock Companies Acts, 1856, Preamble. 1857, Provision is made for the Incorporation and Regulation of Companies that have a nominal Capital of fixed Amount, divided into Shares, also of fixed Amount, and hereafter 5 called Proprietary Companies, but Companies formed for the Purposes of Insurance are by the Second Section of the first of the said Acts excluded from the Benefits thereof: And whereas by the Mutual Companies Act, 1857, Provision is made for the Incorporation and Regulation of Companies other than Proprietary Companies, and 10 herein-after called Mutual Companies, including Mutual Insurance Companies: And whereas it is expedient that Provision should be made for the Regulation of Insurance Companies formed previously to the passing of this Act, and herein-after called Existing Insurance Companies, and that Provision should also be made for the Incorpora15 tion and Regulation of Companies herein-after to be formed for the Purposes of Insurance: Be it enacted by the Queen's most Excellent Majesty, by and with the Advice and Consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the Authority of the same, as follows:

Short Title of Act.

I. This Act may be cited for all Purposes as "The Insurance Companies Act, 1857."

Repeal of

PART I.

EXISTING INSURANCE COMPANIES.

Registration.

II. The Second Section of the Joint Stock Companies Act, 1856, s. 2. of Prin- shall be repealed, so far as relates to Persons associated together for the Purposes of Insurance.

cipal Act.

Compulsory
Registration
of certain
Insurance
Companies.

Permissive

of other

III. The following Companies, that is to say,

5

(1.) Every Company completely registered under an Act passed 10
in the Eighth Year of the Reign of Her present Majesty,

Chapter One hundred and ten, intituled "An Act for the
Registration, Incorporation, and Regulation of Joint

66

"Stock Companies," and carrying on the Business of
Insurance, either alone or in common with other Business, 15
and

(2.) Every Company, however formed, existing at the Time of
the passing of this Act, consisting of more than Twenty
Members, carrying on the Business of Insurance on Lives,
either alone or in common with other Business, and not 20
being a Company formed under the Acts relating to
Friendly Societies,

shall, on or before the First Day of January One thousand eight
hundred and fifty-eight, if a Proprietary Company, register itself as
a Company under the Joint Stock Companies Acts, 1856, 1857, and if 25
a Mutual Company, register itself as a Mutual Compauy under the
Mutual Companies Act, 1857.

IV. Every Company existing at the Time of the passing of this Registration Act consisting of Seven or more Members carrying on the Business. Insurance of Insurance either alone or in common with other Business, and not 30 Companies. being a Company hereby required to be registered, may at any Time

Provision as to mixed

Company.

hereafter, if a Proprietary Company, register itself as a Company under the Joint Stock Companies Acts, 1856, 1857, and if a Mutual Company, register itself as a Company under the Mutual Companies Act, 1857.

V. Any existing Insurance Company, formed partly on the Principle of a Proprietary Company and partly on that of a Mutual Company, shall for the Purposes of this Act be deemed to be a Proprietary Company.

.VI. If

35

VI. If any Company hereby required to register under the Joint Penalty on Stock Companies Acts, 1856, 1857, or under the Mutual Com- Company not regispanies Act, 1857, makes default in registering on or before the said tering. First Day of January One thousand eight hundred and fifty-eight, 5 then, from and after such Day, until the Day on which such Company is so registered under the Joint Stock Companies Acts, 1856, 1857, or under the Mutual Companies Act, 1857, as the Case may require, the following Consequences shall ensue; (that is to say,)

10

15

20

(1.) The Company shall be incapable of suing either at Law or in
Equity:

(2.) No Dividend shall be payable :

(3.) Each Director or Manager of the Company shall for each
Day during which the Company is in default incur a Penalty
of Five Pounds, and such Penalty may be recovered by any
Person, whether a Shareholder or not in the Company, and
be applied by him to his own Use:

Nevertheless such Default shall not render the Company so being in
default illegal, nor subject it to any Penalty or Disability, other than
as specified in this Section.

VII. No Insurance Company shall be registered as a Limited Condition Company under the Joint Stock Companies Acts, 1856, 1857, unless precedent to Registration an Assent to its being so registered has been given by at least Three with Limited Fourths in Number and Value of such of its Shareholders as may Liability. have been present, personally or by Proxy, in Cases where Proxies 25 are allowed by the Regulations of the Company, at some General Meeting summoned for that Purpose.

Board of
Trade, in

stances, to

VIII. If any existing Insurance Company hereby required or Power of authorized to be registered is, by reason of any special Circumstances attending its Constitution or Regulations, unable to comply with the certain In30 Provisions of the Joint Stock Companies Acts, 1856, 1857, or, as modify Prothe Case may be, of the Mutual Companies Act, 1857, relating to visions with Registration, the Board of Trade may, on the Application of such respect to existing Company, either dispense with its Compliance with any One or more Companies. of the Provisions of the said Acts relating to Registration, or it may, 35 by any Writing under the Hands of One of its Secretaries, empower such Company to make such Alterations in its Constitution or Regulations as will enable it to comply with the Provisions of such Acts relating to Registration.

under Joint

IX. The Registration under the Joint Stock Companies Acts, Registration 40 1856, 1857, or, as the Case may be, under the Mutual Companies Stock Com Act, 1857, of any Company existing at the Time of the passing of panies Act this Act, and hereby required or authorized to be registered, shall not to affect Obligations