OpenLegislation

Paragraph 13 Liabilities

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

Subject to paragraph (3) below, the following information shall be given by way of a supplementary note to Form 14 or 15—

(a)

in the case of any charge over assets of the company, the particulars specified in sub-paragraph (2) below or a statement that there are no such charges;

(b)

the total potential liability, and the amount provided for that liability, to taxation on capital gains which might arise if the company disposed of its assets, or a statement that there is no such potential liability;

(c)

a brief description of any other liabilities being contingent liabilities not included in Form 14 or 15 (other than liabilities arising under an inward contract of insurance or reinsurance) including, where practicable, the amounts or estimated amounts of those liabilities, or a statement that there are no such contingent liabilities;

(d)

a brief description of any guarantee, indemnity or other contractual commitment, effected by the company other than in the ordinary course of its insurance business, in respect of the existing or future liabilities of any related companies, including—

(i)

the maximum liability of the company specified in such guarantee, indemnity or contractual commitment or, where no such amount is specified, a statement to that effect;

(ii)

the amount of any provision made in respect of such liability; and

(iii)

the amount reported under sub-paragraph (c) above in respect of such liability,

or a statement that there are no such guarantees, indemnities or contractual commitments;

(e)

a description of any other uncertainty where such a description is, in the opinion of the directors, necessary for a proper understanding of the financial position of the company.

2.

The particulars referred to in sub-paragraph (1)(a) above are—

(a)

the nature of the charge, including a brief description of the terms which are relevant to securing the prior claim of any person to assets which are subject to the charge;

(b)

for each line in Form 13, the amount included in respect of assets which are subject to the charge; and

(c)

for each line in Form 14 or 15, the amount included in respect of liabilities which are secured by the charge.

(3)

Sub-paragraph (1)(a) and (c) above may be disregarded by a company in the case of—

(a)

one or more charges over assets which are attributable to either the long term or the general business assets and whose aggregate value (as shown on Form 13) does not exceed 2½ per cent. of the long term or general business amount, as the case may be; or

(b)

one or more contingent liabilities whose aggregate value does not exceed 2½ per cent. of the long term or general business amount, as the case may be.

(4)

Sub-paragraph (1)(d) above may be disregarded by a company in respect of one or more guarantees, indemnities or contractual commitments where the aggregate of the maximum liabilities specified in such guarantees, indemnities or contractual commitments does not exceed 2½ per cent. of the long term or general business amount, as the case may be.

(5)

For the purposes of this paragraph, “charge” shall include any arrangement whatsoever, whether contractual or otherwise, which operates to secure the prior claim of any person over general creditors to any assets on a winding up of the company.