Court orders liquidation of RegencyNem Insurance Ghana Limited

In April 2021, The National Insurance Commission imposed supervisory restrictions on RegencyNem Insurance Ltd. following some regulatory breaches that the firm had not been able to resolve.

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A High Court in Accra has ordered the liquidation of RegencyNem Insurance Ghana Limited.

This follows a recommendation to that effect made by a Statutory Manager appointed by the regulator, National Insurance Company to manage the company's capital-impaired situation.

The object of the National Insurance Commission is to ensure effective administration, supervision, regulation, monitoring, and control of the business of insurance, to protect insurance policyholders and the insurance industry.

The lawyer who led the NIC to secure this order, Dr. Kweku Ainuson tells Dennislaw news that the company’s capital was impaired and the National Insurance Commission per the new Insurance Act, appointed a Statutory Manager to help manage the situation in order to salvage it.

In April 2021, The National Insurance Commission imposed supervisory restrictions on RegencyNem Insurance Ltd. following some regulatory breaches that the firm had not been able to resolve. 

In line with the Commission’s mandate under the Insurance Act 2021 (Act 1061) to protect the interest of past, current and prospective customers of the company, Ms. Dzidzorli Adzo Asafo was appointed as the Statutory Manager of RegencyNem Insurance Ltd in accordance with Section 99 of the Insurance Act 2021(Act 1061).

Per the Insurance Act 2021 (Act 1061) the Statutory Manager exercised the powers of the shareholders and directors, and had control of and managed the business, assets, liabilities, and affairs of RegencyNem Insurance Ltd.

He added however that during this period of statutory Management, the Statutory manager issued a report to the effect that the company should be liquidated.

Dr. Ainuson also indicated that even though some third parties made inquiries in that period with the view to investing in the company, they were unable to come through.

As a result, the NIC took the position to apply to the court to liquidate the company per the Insurance Act.

“You know, the Insurance Company is also connected to the financial sector so the NIC is worried that if it does not liquidate the company and it collapses on its own, it may affect the insurance industry.”

“So we have gone to court to apply for that liquidation on behalf of the NIC,” he said.

Liquidation

This is basically to bring the company to an end as a result of the company’s inability to maintain its minimum capital.

It is an orderly way in which the law allows the regulator to bring the Insurance Company to an end by appointing a liquidator to take over the assets of the company and supervise an orderly disposition of the assets to satisfy any debt requirement that they may have.