38.2-4234 - Examinations. - Virginia Statutes

§ 38.2-4234. Examinations.

A. In addition to the powers the Commission has under Article 4 of Chapter 13(§ 38.2-1317 et seq.) of this title, the Commission shall also have the powerto order any nonstock corporation registered under § 38.2-4231 to produce anyrecords, books, or other information papers in the possession of the nonstockcorporation or its affiliates necessary to determine the financial conditionor legality of conduct of the nonstock corporation. If the nonstockcorporation fails to comply with the order, the Commission shall have thepower to examine its affiliates to obtain the information.

B. The Commission shall exercise its power under subsection A of this sectiononly if the examination of the nonstock corporation under Article 4 ofChapter 13 (§ 38.2-1317 et seq.) of this title is inadequate or the interestsof the subscribers of the nonstock corporation may be adversely affected.

C. The Commission may retain at the expense of the registered nonstockcorporation any attorneys, actuaries, accountants and other expertsreasonably necessary to assist in the conduct of the examination undersubsection A of this section. Any persons so retained shall be under thedirection and control of the Commission and shall act in a purely advisorycapacity.

D. Each nonstock corporation producing books and papers for examinationrecords pursuant to subsection A of this section shall be liable for andshall pay the expense of the examination in accordance with the provisions ofArticle 4 of Chapter 13 (§ 38.2-1317 et seq.) of this title.

(1989, c. 606; 1992, c. 588.)