Section 41: Failing insurance institutions.

(1) Where-
(a) an insurance institution informs the Commission that-
(i) it is likely to become unable to meet its obligations under the Insurance Act; or
(ii) it is about to suspend payment of claims to any extent; or
(iii) it is insolvent; or
(b)
where, after an examination, inspection, investigation or intervention under this Act or otherwise howsoever, the Commission is satisfied that an insurance institution-
(i) is of an unsound condition so that its method of transacting its business is such as to render its continued operation hazardous to its policy holders and potential clients; or
(ii) has failed to maintain the statutory reserves; or
(iii) has failed to maintain adequate management control; or
(iv) has failed generally to comply with the provisions of this Act or the Insurance Act or of regulations made thereunder,
the Commission may, by order in writing, exercise any one or more of the powers specified in subsection (2) of this section.
(2) The Commission may, by order in writing under subsection (1) of this section-
(a) prohibit the insurance institution from transacting any further business for such period as may be set out in the order, and make the prohibition subject to such exceptions, and impose such conditions in relation to the explanations as may be set out in the order, and from time to time, by further order similarly made, extend that period;
(b) require the insurance institution to take any step or any action or to do or not to do any act or thing whatsoever, in relation to the insurance institution or its business or its directors, partners or officers, which the Commission considers necessary and which is set out in the order, within such time as may be stipulated therein;
(c) remove for reasons to be recorded in writing, with effect from such date as may be set out in the order, any manager or officer of the insurance institution, notwithstanding anything in any written law, or any limitations contained in the Memorandum and Articles of Association or partnership agreement of the insurance institution;
(d) in respect of an insurance institution, notwithstanding anything in any written law or any limitations contained in the Memorandum and Articles of Association or other agreement of the insurance institution and in particular, notwithstanding any limitation therein as to the minimum number of directors, for reasons to be recorded in writing-
(i) remove from office, with effect from such date as may be set out in the order, any director of the insurance institution; or
(ii) appoint any person or persons as a director or directors, of the insurance institution and provide in the order for the person or persons so appointed to be paid by the insurance institution such remuneration as may be set out in the order;
(e) appoint any person to advise the insurance institution in relation to the proper conduct of its business, and provide in the order for the person so appointed to be paid by the insurance institution such remuneration as may be set out in the order;
(f) all appointments and removals to be undertaken by the Commission under this section shall be subject to the prior approval of the Minister.