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The Insurance Act, 1938

( ACT NO. IV Of 1938 )

Procedure at liquidation
92. (1) As soon as a liquidator is appointed to wind up a society he shall take charge of all property movable or immovable of the society and of all its books and documents.
 
 
 
 
(2) If any proprietor or officer of the society or any other person retains any portion of the assets of the society or fails to deliver to the liquidator any book or document when so required by the liquidator he shall be punishable with imprisonment which may extend to six months, or with fine which may extend to five hundred Taka, or with both, and the Court may order the delivery of the assets or book or document to the liquidator.
 
 
 
 
(3) The liquidator shall, within fifteen days of his appointment, send notice by post to all persons who appear to him to be creditors of the society that a meeting of the creditors of the society will be held on a date not being less than twenty-one nor more than twenty-eight days after his appointment, and at a place and hour to be specified in the notice, and shall also advertise notice of the meeting once in the 1[* * *] official Gazette and once at least in two newspapers 2[* * *].
 
 
(4) At the meeting so held the creditors shall determine whether an application shall be made for the appointment of any person as liquidator in the place of or jointly with the liquidator already appointed, or for the appointment of a committee of inspection, and, if they so resolve and an application accordingly is made at any time not later than fourteen days after the date of the meeting by any creditor appointed for the purpose at the meeting, the Chief Controller of Insurance shall appoint a suitable person in place of or jointly with the liquidator already appointed, and determine the remuneration to be paid to him, and if so desired, shall also appoint a committee of inspection.
 
 
 
 
(5) The committee of inspection shall, subject to any prescribed conditions, have a general power of supervision over the acts of the liquidator and shall have the right to inspect his accounts at all reasonable times.
 
 
 
 
(6) The liquidator shall, with such assistance from an actuary as may be required, ascertain as soon as practicable the amount of the society's liability to every person appearing by the society's books to be entitled to or interested in any policy issued by the society, and shall give notice of the amount so found to each such person in the prescribed manner and each such person on receiving such notice shall be bound by the value so ascertained.
 
 
 
 
(7) The liquidator shall make a valuation of the assets of the society and an estimate of the costs of the winding up, and shall on the basis of these, settle the list of contributories.
 
 
 
 
(8) The liquidator shall apply to the Chief Controller of Insurance for an order for the return of the deposit made by the society under section 73 and the Chief Controller of Insurance shall on such application order the return of the deposit subject to such terms and conditions as he may think fit.
 
 
 
 
(9) In administering and distributing the assets of the society the liquidator shall have regard to any directions that may be given by the creditors or contributories at a general meeting or by the Chief Controller of Insurance.
 
 
(10) The liquidator shall keep books of account in which he shall record the proceedings at all meetings attended by him, all amounts received or expended by him and any other matter that may be prescribed, and these books may, with the sanction of the Chief Controller of Insurance, be inspected by any creditor or contributory.
 
 
 
 
(11) If the winding up continues for more than a year, the liquidator shall summon a meeting of the creditors and contributories at the end of the first year and of each succeeding year, and shall lay before them an account of his acts and dealings and of the conduct of the winding up, and that account together with any views expressed thereon by the meeting shall be forwarded by the liquidator to the Chief Controller of Insurance.
 
 
 
 
(12) So far as is not otherwise provided herein or is not otherwise prescribed under this Act, the liquidator shall so far as practicable follow the procedure to be followed by an official liquidator appointed by the Court for the winding up of a company under the Companies Act, 1913.
 
 
 
 
(13) The costs of the liquidation including the remuneration of the liquidator and any expenses incurred under clause (g) of sub-section (1) of section 91 shall, if the liquidator decides that they shall be payable out of the assets of the society, be payable in priority to all other claims.

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Ministry of Law, Justice and Parliamentary Affairs