Divestment directive

(1) The Supervisor may by written directive require a person who holds a substantial investment or controlling interest in an insurer or insurance intermediary to divest all or a specified proportion of the shares held by that person if– (a) the section 7A (2), (3), (4) or 7B (1) have been violated; (b) the person is not fit and proper; (c) the information provided in the application for approval under section 7D, was materially inaccurate or misleading; or (d) a circumstance exists or existed at the time of the application for approval, for which the Supervisor would not have granted approval if the Supervisor was aware of it at the time of (2) The Supervisor shall, prior to issuing a divestment directive notify the insurer or insurance intermediary and the shareholder in writing of the intention to issue the directive and 40 shall afford them an opportunity to make representations to the Supervisor within fifteen days after the date of the notice, or within any longer period that the Supervisor permits. (3) If the Supervisor is of the opinion that the public interest may be prejudiced by the shareholder continuing to exercise any shareholder rights attached to the shares to be divested, including, but not limited to, the right to attend or vote at meetings of the shareholders, during– (a) the period for specified in sub-section (2); (b) the period preceding the decision of the Minister under section 7G(2); (c) the period preceding the decision of the Supreme Court where an application has been made to the Supreme Court by the Supervisor under section 7H; or (d) the period preceding the decision of the Court of Appeal or the Caribbean Court of Justice where an appeal has been made to that court, the Supervisor may prohibit the shareholder from exercising any such rights until final determination of the matter. (4) The Supervisor shall, upon affording the shareholder and the insurer or insurance intermediary an opportunity to make representations in accordance with sub-section (2), notify them without delay if the Supervisor issues the divestment directive.