CAPI 3.1.3 What is permanent share capital?
Permanent share capital of a firm that is a QFC captive insurer means ordinary paid-up share capital or members' equity or its equivalent (however called) that meets the following requirements:
(a) it is fully paid up;
(b) any dividends in relation to it are non-cumulative;
(c) it is available to absorb losses on a going concern basis;
(d) in case of winding up or insolvency of the firm, it ranks for repayment after all other debts and liabilities;
(e) it is undated;
(f) the proceeds of its issue are immediately and fully available to the firm;
(g) the firm is not obliged to pay any dividend on it (except in the form of
shares that themselves comply with this rule);
(h) the firm does not have any other obligation or commitment to transfer any economic benefit in relation to it;
(i) dividends and other charges on it can be paid only out of accumulated realised profits.
|Derived from QFCRA RM/2011-1 (as from 1st July 2011)|