A large tanker vessel is seen from high above

Articles of Association revised

InsightsSeptember 12, 2016

Following recommendations from the Board of Directors and Committee, the Annual General Meeting held on 14 June 2016 resolved to make some amendments to the Articles of Association. These amendments have now been approved by the Financial Supervisory Authority of Norway.

The amendments were:

Reinsurance from captives on mutual basis (subject to Board of Directors’

According to § 1-4 of the Articles of Association, reinsurance did not give right to membership. This had a historical background and related to reinsurance from other insurance companies, being competitors.

The new wording allows for captive reinsurance companies to be accepted as mutual members on a case by case basis subject to approval from the Board. The key criterion shall be that the business would have qualified as mutual business if it had been written directly from the owner or manager and that the captive is owned or controlled by the owner / manager.

40 % requirement for Committee quorum

In order to avoid a possible situation where the Committee does not form a quorum, the requirement for a quorum was reduced to 40 % of the members of the Committee. § 2-6 of the Articles of association was amended accordingly.