Kathmandu: Ex Chief Executive Officer of Prudential Insurance Company, Bir Krishna Maharjan, has been appointed as the Senior Deputy Chief Executive Officer of Nepal Insurance Company, evading the cooling off period as per Corporate Governance Directives 2073.
As per the Corporate Governance Act, the cooling off period of 6 months is applicable to the Chief Executive Officer. He had resigned in the first week of Kartik 2078 at Prudential.
A meeting of the Board of Directors of Nepal Insurance Company held on Kartik 5(October 22,2021) had appointed him as the Senior Deputy Chief Executive Officer for the next four years with effect from Kartik 7(October 24, 2021). The board of directors of Prudential had approved his resignation with effect from 5 Kartik(October 22,2021).
When the CEO working in one company assumes responsibility in another company the very next day, it is not considered fair in terms of Corporate Governance. The regulatory authority, Insurance Board, needs to control such chaos in the insurance sector.