Prime Life AGM for 2069/70 toward Ashoj; at least 13% bonus share expected
Wed, Jul 23, 2014 12:00 AM on AGM/Special AGM,
ShareSansar, July 23:
The crisis-ridden Prime Life Insurance Company Limited is likely to call its annual general meeting for the fiscal year 2069/70 only toward Ashoj (September-October), according to the company officials.
A highly placed source at PLIC told ShareSansar today that they were finalizing the due diligence audit (DDA) as demanded by the Insurance Board at this point.
“Once we finalize it, we will forward it to the regulator. Given the situation, the shareholders can expect the AGM toward Ashoj,” he said.
He further said that since the company’s financial health was sound, the shareholders can expect dividend not less than what they offered for the fiscal year 2068/69.
PLIC had offered 13 percent bonus shares from the net profit it had posted in that fiscal year.
PLIC has been embroiled in a series of scandals which has affected its financial health over a couple of year.
In November last year, the Appellate Court Patan had issued an interim order asking Primelife Insurance not to let its just reappointed CEO Resta Jha to assume office.
A complaint was lodged at the Appellate Court after the insurance company defied the order issued by the Insurance Board, the regulator, not to reappoint Jha to the post of the CEO, stating that he does not have enough experience and qualification to handle the post.
As per the new Insurance Corporate Governance Regulation 2069, the regulator in October had rejected Jha’s reappointment as the chief executive of the insurance company, citing eligibility criterion.
Shortly before his reappointment as the CEO, the Insurance Board had penalised Jha Rs 10,000 (which is the highest amount of fine the board could impose) for indulging in expenditures beyond the limit set by the regulator on agent incentive and promotional activities.
And the regulator had gone on to direct the company to hold a DDA.
In 2012 the IB had sought clarification from Jha for procuring interior décor items without calling for proposals.
