Section 56: Approval of transfer or amalgamation

56. Approval of transfer or amalgamation (1) The Commission shall not approve a transfer or an amalgamation referred to in section 54 except where it is satisfied that— (a) the provisions of this Part have been complied with; (b) the transaction is consistent with this Act and in the interests of the policy holders of the insurer concerned; (c) payment of the expenses referred to in section 55 (4) has been made or secured; (d) the transferee or amalgamated insurer, as the case may be, is or immediately after the approval will be licensed under this Act to carry on insurance business or the appropriate class or classes of insurance business; and I15 – 41 [Issue 1] Insurance Act (e) the transferee’s or amalgamated insurer’s financial resources and the other circumstances of the case justify the giving of its approval. (2) Subject to subsection (1), the Commission may, after considering the accounts, documents and reports lodged with it and any representations made in connection with an application under section 55— (a) approve a scheme of transfer or amalgamation on such terms as it considers necessary; or (b) reject the application. (3) The Commission shall— (a) cause to be published a notice of its decision; and (b) send a copy of the notice to the transferor and the transferee or to the parties to the amalgamation.