Insurance Act prohibits Golyan to continue his tenure in BODs of Nepal Life

Kathmandu: Nepal Life Insurance Company Limited (NLIC) has continued the violation of the prevailing Insurance Act 2079. According to the Act, the member of the board of directors (BODs) Shakti Kumar Golyan cannot continue his tenure as a member of BODs.

Golyan has shareholdings both in NLIC and Asian Life Insurance Company Limited (NLICL). Golyan has a total of 690,292 promoters’ shares in NLIC while he holds 1,585,270 promoters’ shares in ALICL. The shareholding of Golyan accounts for 6.24 percent of the total number of shares issued by ALICL.

According to Clause 50(e) of the Insurance Act, Golyan is disqualified to join the BODs of NLIC as he holds above 1 percent of the shares of ALICL. The clause states that incumbent directors or employees who are directors of any insurance company or banks and financial institutions, or an organization licensed to collect any type of deposits or individual who holds foundational shares of any other insurer, is ineligible to join the BODs as a member.

Golyan was elected to the position of director at the 21st Annual General Meeting held on 21st Chaitra 2078. He is disqualified as a member of BOD from 22nd Kartik 2079, the date when the Insurance Act 2079 came into effect.

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