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The Insurance Act, 1938

( ACT NO. IV Of 1938 )

Winding up by the Court
53. (1) The Court may order the winding up in accordance with the Companies Act, 1913, of any insurance company and the provisions of that Act shall, subject to the provisions of this Act apply accordingly.
 
 
 
 
(2) In addition to the grounds on which such an order may be based, the Court may order the winding up of an insurance company-
 
 
 
 
(a) if with the sanction of the Court previously obtained a petition in this behalf is presented by shareholders not less in number than one-tenth of the whole body of shareholders and holding not less than one-tenth of the whole share capital or by not less than fifty policy-holders holding policies of life insurance that have been in force for not less than three years and are of the total value of not less than fifty thousand Taka; or
 
 
 
 
(b) if the Chief Controller of Insurance, who is hereby authorised to do so, applies in this behalf to the Court on any of the following grounds, namely:-
 
 
 
 
(i) that the company has failed to deposit or to keep deposited with the Bangladesh Bank the amounts required by section 7 or section 98,
 
 
 
 
(ii) that the company having failed to comply with any requirement of this Act has continued such failure or having contravened any provision of this Act has continued such contravention for a period of three months after notice of such failure or contravention has been conveyed to the company by the Chief Controller of Insurance,
 
 
 
 
(iii) that it appears from the returns furnished under the provisions of this Act or from the results of any investigation made thereunder that the company is insolvent, or
 
 
 
 
(iv) that the continuance of the company is prejudicial to the interests of the policy-holders.

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Ministry of Law, Justice and Parliamentary Affairs