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Medical Schemes Act, 1998 (Act No. 131 of 1998)

Chapter 4 : Medical Schemes

27. Cancellation and suspension of registration


(1) The Registrar may, with the concurrence of the Council, after investigation and after having afforded the medical scheme, or its legal representative an opportunity of being heard, cancel the registration of a medical scheme—
(a) on proof that the medical scheme has ceased to operate;
(b) if the medical scheme was registered by virtue of misleading information;
(c) if the medical scheme is unable to maintain a financially sound condition as contemplated by this Act;
(d) if the medical scheme is unable to enrol within the period determined by the Council, or to maintain the minimum number of members required for the registration of a medical scheme; and
(e) if the medical scheme, after written notice from the Registrar, persists in violating any provision of this Act.


(2) The Council may, in lieu of cancellation, suspend the cancellation, in terms of subsection (1), if the Registrar is satisfied that the medical scheme will be able to rectify the situation contemplated in paragraph (c), (d) or (e) of subsection (1) in a manner consistent with the provisions of this Act.


(3) The Registrar shall inform the medical scheme concerned of any decision taken in terms of subsection (1) by means of a written notice served upon the medical scheme and shall come into operation on a date specified in such notice.