Kathmandu: The Insurance Board (IB), has made some amendments to the Corporate Good Governance Directives for Insurers(CGGDI).
It has restricted the members of board of directors to enjoy more than two term. Earlier there was not such restrictions to the members of BOD representing either promoters’ or general public group. There’s already a provision that an independent director can not enjoy more than one term. One term equals to 4 years.
The amendment also mentions that the previous term of an independent director too will be counted if he/she get elected from promoters’or general public group as member of BODs.
The recent move of the regulatory authority will largely affect existing members of BODs of most of the insurers.
Nepal Life Insurance Company (NLIC) has announced notice for election of new member of board of directors. The amendment made to the Good Governance Directives is expected to postpone the election process of NLIC’s members of BODs. The directives has left no room for Govind Lal Sanghai, Ram Awartar Agrawal,Bibek Kumar Agrawal and Kamalesh Kumar Agrawal to get reelected as members of BODs.
Sanghai has already enjoyed more than 4 terms as Chairman of BODs of NLIC.