NB Insurance from troubled insurer to a revived company; Announces 10:8 right shares

NB Insurance Company Ltd. (NBIL) is an established general insurance company. The promoter group holds 80% of the paid up capital and the balance 20 percent of the paid up capital is from general public subscription. The Company has Authorized Capital of Rs.50 crore, Issued Capital Rs 25.14 crore, and paid up Capital of Rs 25.07 crore.

About two years ago Insurance Board (IB) had frozen all the bank accounts of NBIL for financial impropriety and embezzlement. It had also not submitted financial reports to the regulatory body as required by law. Furthermore, the NBIL made a payment of Rs 59 million for clearing rent dues without getting approval from IB. Thus, IB had barred NBIL from conducting business from December 29, 2013 after it failed to obey its directives.

The promoters of IME group and Hathway Investment have purchased 40.5% and 5% stake of the of promoters shares respectively. After the new promotes of the NBIL met the requirement set by IB, NBIL resumed its operation from June 19, 2015.

Now the company has called for the 14th, 15^th, 16^th & 17^th Annual General Meeting (AGM) on Poush 30, 2072. The AGM is going to be held at DECC, world Trade Center, Tripureswor Kathmandu at 11:00 AM.

The company has proposed 10:8 right shares in the AGM announcement. The AGM is also set to elect 5 BOD members from promoter shareholders group and 2 BOD members from public shareholder group. The last traded price of ordinary shares of NBIL stood at Rs 80/unit on December 24, 2013.

Under the new BoD after AGM, NBIL is expected to make a strong come back with good corporate governance.