The Supreme Court of Appeal has approved the closure of Citizen Insurance Company which was placed under statutory management on August 26 2011 under the Financial Services Act 2010 and has appointed Reserve Bank of Malawi (RBM) to be liquidator.
RBM spokesperson Mbane Ngwira confirmed that the Supreme Court made its determination on Tuesday in Blantyre and that means central bank governor Charles Chuka will be liquidator as the registrar of financial institutions.
The case was presided over by Chief Justice Anastasia Msosa and Judges Jane Ansah and Richard Chinangwa.
Ngwira said RBM “will have settled all the debts and premiums that the company owes its debtors and the remainder will be given back to the shareholders.”
Citizen insurance Company was found by the RBM to be in gross breach of the Financial Services laws as management and shareholders of the institution failed to address a number of issues that potentially threaten the interests of policyholders and the public.
The purpose of placing the insurance company under statutory management was to determine its viability.
RBM, based on its assessment, found that the company was insolvent, and in line with Section 72 (4) of the Financial Services Act, the governor proceeded to petition the court for a winding up order which was granted on Tuesday.Follow and Subscribe Nyasa TV :