Chief Justice (ag.) Ian Chang continues to rule in a number of important cases, nationally.

Acting Chief Justice Ian Chang on Friday ordered the liquidation of CLICO (Guyana) in a long delayed ruling that said available material pointed “unerringly” in the direction of its insolvency and against the interests of policyholders that it be allowed to continue. Justice Chang ordered that the Bank of Guyana be appointed as liquidator to execute the wind-up order; and this is expected to pave the way for the government to make good on its assurance of guaranteeing the policies and investment held by Guyanese in CLICO. The judge, in his seven-page ruling, also addressed the investment of more than half of CLICO’s assets outside of the country. The acting chief justice referred to the investment move as an “illegal transmission”, saying that from all appearances the company had little or no chance of recouping the US$34 million it transmitted to its sister company CLICO (Bahamas). The Bahamas investment represents about 53 per cent of Clico’s total assets and, according to the Justice Chang, the law did not allow any insurer carrying on long-term insurance business to invest more than 15 per cent of its statutory fund outside of Guyana. Court battle Chang’s ruling signalled the end, perhaps temporarily, of a bruising court battle between the insurance company – which came crashing down earlier last year – and the state. Government had placed the company under judicial management in February 2009 after CLICO (Bahamas) was ordered wound up to a deficit of assets relative to liabilities in the sum of US$30 million. CLICO (Guyana) fought its way through the court system, initially challenging the petition to have the company wound up and later accusing the system of denying it a fair hearing. CLICO managed to stop Justice Chang’s ruling last December, but earlier this week Justice Diana Insanally dismissed a constitutional motion by the company and paved the way for the chief justice to rule in the case. “The clear picture is that not only that total liabilities of CLICO far exceed its assets, but that the company is on rapid decline,” Justice Chang said in his ruling, noting that this state of financial affairs was apparently triggered by the “illegal transmission of US$34 million externally in favour of CLICO (Bahamas) Ltd.(Stabroek News) Source: Nation News Links: Guyanaese Lawyer │ Chief Justice - Ian Chang ESPN Cricket Info │ WIPA vs Weaklings

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