Kathmandu: A special general meeting (SGM) of Prabhu Insurance Limited held today at the company’s central office, Prabhu Complex, has authorized the board of directors(BODs) to take forward the necessary process for the merger.
The meeting was called to delegate authority to the BODs to decide on future mergers and acquisitions with any other non-life insurer and to sign a memorandum of understanding, appoint a recognized appraiser to assess movable property and liabilities, determine its remuneration and, all other necessary procedures related to mergers and acquisitions. The SGM has delegated the authority to the BODs to take necessary actions and decisions regarding mergers or acquisition.
The company is in informal discussions with other non life insurers for merger. The Insurance Board has proposed a new minimum paid-up capital which has created the environment for forceful merger among life or non-life insurer to meet the regulatory capital.