Commonwealth Consolidated Acts

LIFE INSURANCE ACT 1995 - SECT 63

             (1)  A distribution of shareholders' capital in relation to a statutory fund:

                     (a)  may only be made after the directors of the life company concerned have received the appointed actuary's written advice as to the likely consequences of the proposed distribution; and

                     (b)  must not be made if:

                              (i)  the distribution would have the result that the prudential standards in relation to solvency would not be satisfied in relation to the fund; or

                             (ii)  the distribution would involve a contravention of a direction given by APRA under section 230B in relation to solvency.

             (2)  Except with the approval of APRA, a distribution of shareholders' capital in relation to a statutory fund must not be made if:

                     (a)  the distribution would have the result that the prudential standards in relation to capital adequacy would not be satisfied in relation to the fund; or

                     (b)  the distribution would involve a contravention of a direction given by APRA under section 230B in relation to capital adequacy.

             (3)  Shareholders' capital may only be distributed in the following ways:

                     (a)  by transfer to shareholders' funds;

                     (b)  by transfer to another statutory fund of the company;

                     (c)  by distribution to owners of policies that provide for participating benefits.