33 / 364
Section z6
amends section 5 2 (3) of the Finance Act,
1920, so as to bring private unlimited companies
within the ambit of Corporation Profits Tax as
respects profits arising on or after i January, 1964.
Section
27 raises from £1,500 to £2,500 the limit
on the deduction which may be allowed for the
remuneration of a director in computing, for the
purposes of Corporation Profits Tax, the profits of a
director-controlled company. The new limit will
apply as respects accounting periods ending after
31 December, 1963.
CERTIFIED COPIES, GRANTS OF
PROBATE AND ADMINISTRATION
MEMBERS please note that they may now, when
lodging papers with applications for grants and pro–
bate, bespeak extra copies of grants for registration
with limited Companies etc., This should be done at
the same time when lodging the papers for the grant
and the extra copies will be available when the
grant is taken up. Members are requested not to
make separate applications as this may cause delay.
INSURANCE ACT, 1964
THE object of this Act is to provide relief for the
policy holders of the Equitable Insurance Company
Limited. In May 1963 the Minister for Industry
and Commerce petitioned the High Court for the
winding up of the Equitable Insurance Company
Limited on the ground that it was insolvent; shortly
afterwards the necessary winding up order was
made by the Court. Though the preparation of the
Act was prompted by the failure of
this one
company, the arrangements which it set up are of a
general and continuing nature, so that there will
also be suitable machinery for the relief of policy
holders in the case of any future insurance insolvency.
The main features of this scheme as envisaged by
the Act are as follows:
(a)
All non-life licensed Insurance Companies will
contribute to the fund in accordance with the
Insurance Compensation Fund in accordance
with their premium income. A non repayable
contribution of £30,000 will be made to
the Fund by the State with the object of
covering the Equitable's Workmens' Com–
pensation Liabilities.
(&) Funds will be available to meet claims under
policies issued by any insolvent insurance
company which is being wound up by the
High Court; the eligible classes of insurance
will be those for which a licence is needed
under the Insurance Acts, other than life;
creditors other than those claiming under
eligible policies will not have access to the
Fund.
(c)
As the annual contributions envisaged will
not be sufficient to discharge the liabilities
of the Equitable within a short space of time
the Minister for Finance will make loans to
the Fund to enable it to cover all outstanding
claims without delay; these loans will be
repaid to the Minister for Finance in due
course.
Section 8 of the Act amends Section 22 of the Act
of 1936 so that a deposit of £100,000 shall be
required from each insurance company by way of
deposit no matter how many classes of business it
carries on. Section 12 of the Act deals with the
purchase and sale of shares of the Irish Life Assurance
Company Limited, by the Minister for Finance
while Section 13 makes provision regarding the
construction of Articles of Association of the Irish
Life Assurance Company Limited. In this connection
the observations of the Minister for Industry and
Commerce on the second reading of the Bill in the
Seanad, should be noted:- "I need hardly mention
that these provisions have no connection whatever
with the other provisions of the Bill; that they were
inserted in this Bill primarily to save the Oireachtas
the time and trouble of dealing with a separate
measure."
(See Seanad Reports Vol. 57 No. 16 ist July, 1964.)
COMMISSIONERS OF CHARITABLE
DONATIONS & BEQUESTS;
BOARD MEETINGS
MICHAELMAS TERM 1964
Tuesday
6th October, 1964
2Oth
1964
3rd November, 1964
17th
1964
i st December, 1964
15th
1964
CASES OF THE MONTH
Solicitors' right to apply for costs in Divorce application
A
HUSBAND and wife each filed petitions for
divorce against the other, the wife charging the
husband with cruelty, and
the husband cross-
charging the wife with adultery. Both suits were
defended, the wife was granted legal aid in respect
of each. The husband was ordered to give security