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The Insurance Act, 1938

( ACT NO. IV Of 1938 )

Inquiry by or on behalf of Chief Controller of Insurance
87. (1) The Chief Controller of Insurance shall at least once in two years and may, if he thinks fit, at any time visit personally or depute a suitable person to visit the principal office of a provident society or the principal office in Bangladesh of a society having its principal place of business or domicile outside Bangladesh and inquire into the affairs of the society, or may, after giving notice to the society and giving it an opportunity to be heard, direct such an inquiry to be made by an auditor or actuary appointed by him or by both an auditor and an actuary appointed simultaneously, or first by an auditor only or an actuary only and afterwards by an actuary or auditor.
 
 
 
 
(2) For the purposes of any such inquiry the Chief Controller or the auditor or actuary, as the case may be, shall be entitled to examine all books and documents of the society and may demand from the society or any officer of the society such explanations as he may require on any matter relating to the affairs of the society.
 
 
 
 
(3) The results of any such inquiry shall be recorded in writing by the person making the inquiry, and four copies of the record shall be supplied to the Chief Controller of Insurance; and when the inquiry is completed, a copy of the
 
 
record, or of each such record where more than one are made in the course of the same inquiry, shall be sent by the Chief Controller of Insurance to the society concerned and shall be open to inspection by any member or policy-holder of the society.
 
 
 
 
(4) All expenses of and incidental to any inquiry made by an auditor or actuary under sub-section (1) including any expenses incurred before the date on which the Chief Controller of Insurance receives notice of an appeal under clause (e) of sub-section (1) of section 110 shall be defrayed by the provident society, shall have priority over other debts due from the society, and shall be recoverable as an arrear of land-revenue.
 
 
 
 
(5) The Chief Controller of Insurance may, by notice in writing require the provident society to comply within a time to be specified therein (not being less than fifteen days from the receipt of the notice by the society) with any directions he may issue to remedy defects disclosed by an inquiry under this section.
 
 
 
 
(6) If the society fails to comply with any directions issued under sub-section (5), the Chief Controller of Insurance may, after giving notice to the society and giving it an opportunity to be heard, apply to the Court for the winding up of the society.
 
 

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