NFRS requirements prevents Lumbini General Insurance to issue bonus shares; SGM decides to issue 20% right shares to meet paid up capital requirement

Lumbini General Insurance has convened its Special General Meeting on Baisakh 25, 2076. The SGM has endorsed the decision to issue 20% right shares to meet the paid up capital requirement as prescribed by Insurance Board.

The SGM has decided to raise the paid up capital, authorized capital and issued capital of the insurance company and to issue 20% right on current Rs 88 crore paid up capital.

The chairman of the insurance company Mr. Manohar Das Mul informed that the new provisions of NFRS has stifled the company’s plan to provide bonus shares to its shareholders and has therefore decided to issue right shares.