Prime Life Insurance might hold its AGM for last three fiscal year on the beginning of upcoming fiscal year; 3 FY dividend is due; paid up is below regulator requirement

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. Prime Life Insurance Company Limited (PLIC) has not been able to hold their AGM for the last three fiscal year 2069/70, 2070/71 and 2071/72. Company Act 2063 requires all public companies to hold their Annual General Meeting every year. Mr. Rajan Prashad Adhikary, Company Secretary of PLIC said, “the valuation work is being carried out, most probably we will be conducting the AGM for the fiscal year 2069/70, 2070/71 and 2071/72 by the Shrawan/ Bhadra ,2073.” Existing paid up capital requirement set by Beema Samiti requires  Life Insurance Companies to have a paid up capital of Rs. 50 crore whereas Prime Life Insurance has a paid up capital of Rs. 48.81 crore. It has a reserve fund of Rs. 56.47 crore. Prime Life Insurance will be issuing bonus shares for the last three fiscal year to meet the paid up capital requirement. There is also a rumor that PLIC will be issuing right shares and that rumor has hiked the price of its scrips in secondary market lately. Its last trading price at Nepal Stock Exchange stands at Rs 1780. Prime Life Insurance has posted a net profit of Rs. 6.82 crore in the second quarter of ongoing fiscal year.