3 Life Insurance Companies yet to conduct AGMs of two fiscal years; Irresponsibility or Inability?

The clock has been ticking away for 3 life insurance companies as they are yet to conduct AGMs for the past two fiscal years. As per Company Act, all registered companies should convene the AGM of earlier fiscal year by the end of Poush. However, National Life Insurance Company Limited (NLICL), Gurans Life Insurance Company Limited (GLICL) and Life Insurance Corporation Nepal (LICN) have not convened their AGM for the FY 2073/74 yet.

While most of the companies have been announcing their AGM for the FY 2074/75, the 3 life insurance companies have been unable to convene their AGM for the FY 2073/74.

When enquired about the reason for the delay in the AGM of National Life Insurance Company, the Assistant GM of the company, Mr. Pratap Man Shrestha, stated that the delay was mainly due to the statutory requirements related to the financial statements as well as the time taken to meet the minimum capital requirement. He further notified that the company’s financial reports have been approved from the Insurance Board, and that the AGM for FY 2073/74 will be convened within 2-3 months. Mr Shrestha also said, “The necessary works for the AGM of FY 2074/75 has also been going on. If possible, AGM for both the fiscal years will be done together and if not, it will be convened as soon as the AGM of 2073/74 is completed”

However, similar kind of response could not be received from Gurans Life Insurance Company. The company secretary of the company denied in providing complete information about the reason for the delay of the AGM. He said, “We have been doing the necessary tasks to convene the AGM on time, I cannot point out any specific reasons for it.” said the Company Secretary of the life insurance company.

On the other hand, Life Insurance Corporation has already announced 12% bonus shares for the FY 2073/74. But no further development has been seen in its AGM status after that.

The collective market capitalization of the 3 companies amounts to Rs 38.91 arba. They hold a large number of shareholders to their name and such delay in the AGM has been directly affecting the shareholders.