Challenger Life Limited

FEDERAL COURT OF AUSTRALIA

Challenger Life Limited [2004] FCA 618

Life Insurance Act 1995 s 191

The Application of Commonwealth Life Ltd and Anor [2003] FCA 501 followed
Re AMP Henderson Global Investors Limited [2003] FCA 1631 referred to

THE APPLICATION OF CHALLENGER LIFE LIMITED ACN 006 381 193 AND CHALLENGER LIFE NO 2 LIMITED ACN 072 486 938
N 459 OF 2004

GYLES J
13 APRIL 2004
SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY	N 459 OF 2004

THE APPLICATION OF CHALLENGER LIFE LIMITED ACN 006 381 193 AND CHALLENGER LIFE NO 2 LIMITED ACN 072 486 938
APPLICANTS

JUDGE:	GYLES J
DATE OF ORDER:	13 APRIL 2004
WHERE MADE:	SYDNEY

THE COURT ORDERS THAT:

1. Pursuant to s 191(5) of the Life Insurance Act 1995 (the Act), the need for compliance by the Applicants with par 2(c) of s 191 of the Act by giving to policy owners of Challenger Life No 2 Limited an approved summary of the Scheme the subject of this application be dispensed with.

2.   The applicants pay the costs of today of the Australian Prudential Regulation Authority.

Note:   Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY	N 459 OF 2004

THE APPLICATION OF CHALLENGER LIFE LIMITED ACN 006 381 193 AND CHALLENGER LIFE NO 2 LIMITED ACN 072 486 938 APPLICANTS
JUDGE:	GYLES J
DATE:	13 APRIL 2004
PLACE:	SYDNEY

REASONS FOR JUDGMENT

1. This is an application under s 193 of the Life Insurance Act 1995 for an order under s 194 of the Act confirming a scheme for the transfer of the life insurance business of Challenger Life Limited to the life insurance business of Challenger Life No 2 Limited and other consequential orders. This is the first return date of that application. An order is sought pursuant to s 191(5) of the Act, that the need for compliance by the applicants with par 2(c) of s 191 of the Act by giving policy holders of Challenger Life No 2 Limited an approved summary of the scheme be dispensed with.

2. The principles which are to be applied in considering the exercise of the discretion to make such an order have been referred to by Sackville J in The Application of Commonwealth Life Ltd and Anor [2003] FCA 501 at [8]–[13] in a setting which counsel for the applicants suggests is very similar to the present setting. His Honour said at [8]:

   ‘I think that some care needs to be taken before an order is made dispensing with the requirements of section 191(2)(c) of the Act.

   Clearly enough, the policy underlying the statutory requirement, when read in conjunction with s 191(2)(b), is to give every affected policyholder a summary of the scheme and, an opportunity, if he or she so desires, to make submissions to the Court in respect of any application for the confirmation of the scheme.  A…