Kathmandu: Reliance Life Insurance Company (RLI) has called special general meeting(SGM) on 4 July 2022 with a special proposal for merger.
In view of the requirement of additional capital amid the regulatory needs, the SGM has proposed to assign full authority to the BODs to identify and select suitable life insurance company for the purpose of merger or acquisition. Similarly, the proposal to assign authorities for signing a Memorandum of Understanding, applying to the Insurance Board for in-principle consent, appointing consultants, appraisers and auditors to assess the assets and liabilities as required, fixing their remuneration and merging in accordance with the prevailing rules and regulations too will be discussed as an agenda of the SGM.
The BODs is to be given full authority to carry out all the necessary work, complete the procedures, obtain final approval from the authorized body and provide details as directed by the regulatory bodies in this regard. The proposal for authorized and paid up capital increment, making necessary amendments in the MoA and AoA too will be discussed in the SGM.
The company has called a meeting at 11 am at Anmol Banquet in Shankhamul. The Insurance Board has put pressure on the insurers to meet the new paid up capital requirements as far as possible through merger or acquisition.