Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies to a person who is:
(a) a director or senior manager of a general insurer (not including a foreign general insurer); or
(b) a senior manager, or agent in Australia for the purpose of section 118, of a foreign general insurer; or
(c) a director or senior manager of an authorised NOHC; or
(d) a director or senior manager of a corporate agent.
(2) APRA may direct (in writing) that the general insurer, authorised NOHC or corporate agent remove the person from the position if APRA is satisfied that the person:
(a) either:
(i) for a person who is a disqualified person only because he or she was disqualified under section 25A--is disqualified from being or acting as a director or senior manager of the insurer, NOHC or corporate agent; or
(ii) otherwise--is a disqualified person; or
(b) if the person is an individual--does not meet one or more of the criteria for fitness and propriety set out in the prudential standards.
(3) Before directing a general insurer, authorised NOHC or corporate agent to remove a person, APRA must give written notice to:
(a) the person; and
(b) the insurer, NOHC or agent;
giving each of them a reasonable opportunity to make submissions on the matter.
(3A) If a submission is made to APRA in response to the notice, APRA must have regard to the submission and may discuss any matter contained in the submission with such persons as it considers appropriate for the purpose of assessing the truth of the matter.
(3B) A notice given under subsection (3) to a person, a general insurer, authorised NOHC or corporate agent must state that any submissions made in response to the notice may be discussed by APRA with other persons as mentioned in subsection (3A).
(4) A direction takes effect on the day specified in it, which must be at least 7 days after it is made.
(5) If APRA directs a general insurer, authorised NOHC or corporate agent to remove a person, APRA must give a copy of the direction to the person and insurer, NOHC or agent.
(5A) The power of a general insurer to comply with a direction under this section may be exercised on behalf of the general insurer as set out in the table:
Power to comply with a direction | ||
Item | Who may exercise the power | How the power may be exercised |
1 | The chair of the board of directors of the general insurer | by signing a written notice. |
2 | A majority of the directors of the general insurer (excluding any director who is the subject of the direction) | by jointly signing a written notice. |
(5B) The power of an authorised NOHC to comply with a direction under this section may be exercised on behalf of the NOHC as set out in the table:
Power to comply with a direction | ||
Item | Who may exercise the power | How the power may be exercised |
1 | The chair of the board of directors of the NOHC | by signing a written notice. |
2 | A majority of the directors of the NOHC (excluding any director who is the subject of the direction) | by jointly signing a written notice. |
(5BA) The power of a corporate agent to comply with a direction under this section may be exercised on behalf of the agent as set out in the table:
Power to comply with a direction | ||
Item | Who may exercise the power | How the power may be exercised |
1 | The chair of the board of directors of the agent | by signing a written notice. |
2 | A majority of the directors of the agent (excluding any director who is the subject of the direction) | by jointly signing a written notice. |
(5C) Subsections (5A), (5B) and (5BA) do not, by implication, limit any other powers of a general insurer, authorised NOHC or corporate agent to remove a person.
(6) Part VI applies to a direction made by APRA under this section.
(7) A general insurer, authorised NOHC or corporate agent commits an offence if:
(a) the insurer, NOHC or agent does, or fails to do, an act; and
(b) by doing or failing to do the act, the insurer, NOHC or agent fails to comply with a direction under this section.
(7A) If an individual:
(a) commits an offence against subsection (7) because of Part 2.4 of the Criminal Code ; or
(b) commits an offence under Part 2.4 of the Criminal Code in relation to an offence against subsection (7);
he or she is punishable, on conviction, by a fine not exceeding 60 penalty units.
(8) An offence against this section is an offence of strict liability.
Note 1: For strict liability , see section 6.1 of the Criminal Code .
Note 2: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.