Dyoll Insurance Co. Ltd (In liquidation)

IN THE SUPREME COURT OF JUDECA'TURE OF JAMAICA

IN THE CIVIL DIVISION

CLAIM NO. HCV 1267 OF 2005

I N THE MATTER OF DYOLL

INSURANCE COMPANY LIMITED

(IN LIQUIDATION)

AND

I N THE MATTER OF SECTIONS

206 AND . 241 OF , THE

COMPANIES ACT, ,2004

AND

I N THE MATTER OF THE

COMPANIES ACT

IN CHAMBERS

Mr. R.N.A. Henriques Q.C. and Mr. Davi~dB atts instructed by Livingston Alexander

and Levy for the Joint Liquidators

Mrs. Nicole Foster Pusey and Mrs. Symone Mayhew instructed by the Director of

State Proceedings for the Financial Services Commission

Miss Ingrid Pusey for the Financial Services Commission

JULY 27 and AUGUST 3,2006

APPLICATION FOR APPROVAL OF COMPROMISE

SYKES J.

1. The Joint Liquidators ("JLs") have z~pplied to the court for approval of a compromise

which, if approved would bring to an eqd the challenge, by way of judicial review, to the

decision by the Financial Services Commission ("FSC") to increase Dyoll Insurance Company

Limited's rDyolll') deposit. The challenge was brought by the JLs and the corr~mittee of

inspection. The prescribed deposit is a sum required, under section 21 of the Insurance Act,

to be deposited by any insurance conlpany registered under the Insurance Act to sell

insurance in Jamaica. The FSC has the power to increase the size of the prescribed deposit.

When this deposit is made it is sterilized and cannot be used by the insurance company

except in well defined circumstances. \Nhen there is an insolvency the significance and