Asian Life Insurance gets time to recover dividends

KATHMANDU, FEB 10: 

The insurance regulator has granted Asian Life Insurance a fortnight to recover the outstanding dividends from its shareholders. “The company has been given an extension of 15 days from the last deadline — Sunday — to recover the remaining Rs 2.5 million,” informed Shekar Aryal, spokesperson for the Insurance Board. 

The company had distributed cash dividends to shareholders despite a prohibition imposed by the regulator. Asian Life had distributed about Rs 45 million to shareholders as dividends before IB instructed it to stop the distribution. The Board had directed the executive director of the company to recover the amount by February 5. It had recovered Rs 42.5 million by the deadline. Asian Life with a paid up capital of Rs 36 million had distributed 28.15 per cent cash dividend despite a prohibition imposed by the regulator. Regulation does not allow life insurance companies to issue cash dividends to share holders until they increase their paid up capital to Rs 500 million. “In line with the regulation, Asian Life could have opted to issue bonus shares,” he added.

Source: THT