Prime Life Insurance AGM of 2069/70 and 2070/71 still uncertain

 ShareSansar July 2:

Prime Life Insurance Company Limited (PLIC) has not been able to hold their AGM for the last two fiscal year 2069/70 and 2070/71. Company Act 2063 requires allpublic companies to hold their Annual General Meeting every year.

Mr. Rajan Prashad Adhikary, Company Secretary of PLIC said “the actuary evaluation has not finished yet that is why we have not been able to hold the AGM.” He further added, the actuary evaluation will be finished by the end of Ashad and then the AGM of 2069/70 and 2070/71 can be held in the month of Shrawan-Bhadra but the final decision rests with the BoD. If BoD decides to conduct the AGM of the fiscal year 2069/70, 2070/71 and 2071/72 together then it will take additional 6-7 months to hold the AGM.

“The AGM of fiscal year 2068/69 of PLIC had offered 13 percent bonus shares and the dividend that they shall offer for 2069/70 and 2070/71 may be around the dividend offered earlier”, said Mr. Adhikary.
 
Insurance board has stated about the capital requirement for insurance companies in its proposed new act and if the act is endorsed then insurance companies will have to increase their paid up capital to Rs 5 arba. At present, Prime Life Insurance has a paid up capital of Rs 48.81 crore.

Prime Life Insurance Company Limited has posted net profit of Rs.6.06 crore in its 3rd quarter of the fiscal year 2071/72 whereas in the corresponding quarter of previous fiscal year it was 9.29 crore.

Insurance Board has the authority to fine insurance companies who delay their AGMs. The board can even cancel or refuse to renew the license of the companies. But in the history of the board, it has never taken such action against any insurance companies.

The last traded price of PLIC stood at Rs 1160 in the NEPSE.