Kathmandu: The Insurance Board has directed all insurance companies to complete the AGM within 10 months of the completion of the financial year.
All life insurance companies have been instructed to prepare a roadmap for this and submit it to the regulatory authority after getting approval from the board of directors.
If the companies do not prepare the roadmap and audit in time, the approval of financial statements will not be given. “Otherwise, it will be difficult to approve the financial statements,” the circular states.
None of the life insurance companies has been able to hold AGM of previous FY, Even the audit of the previous fiscal year 2076/77 has not been submitted by some life Insurers. Two more companies including Asian Life Insurance have not been able to hold a general meeting in the fiscal year 2075/76.
Life insurance companies have been delaying the AGM citing the problem of actuarial valuation. Before Covid19, most of the life insurance companies have been holding AGM within 9/10 months of the end of the FY,but now there is no sign of holding AGM even after completion of one year of a FY since last year. Moreover, the AGM of state owned insurance company Rastriya Beema Sansthan has been pending since long.
The board issued the circular after the companies started making unnecessary delay in the audit and AGM. Now, the companies will have to prepare a roadmap for conducting the audit and AGM of the last fiscal year and submit it to the Insurance Board. The board argues that since the roadmap has to be approved by the board of directors, the company’s top management and the board of directors will be accountable for on-time AGM.