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TMI BlogCommencement of this Part.X X X X Extracts X X X X X X X X Extracts X X X X ..... as the LIC Act ). It is proposed to amend section 2 of the LIC Act so as to insert new clauses to define the expressions Audit Committee , Board of Directors or Board , Chairperson , Companies Act , court , director , financial statement , fully diluted basis , independent director , Managing Director , Nomination and Remuneration Committee , notification and special resolution , to amend the definition of expression member , and to provide that the words and expressions not defined in the LIC Act or in the Insurance Act, 1938 but defined in the Companies Act, 2013, shall have the meanings respectively assigned to them in the Companies Act, 2013. These amendments are consequential to the other amendments proposed to the LIC Act. It is furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equity shares to the Central Government in consideration for paid-up equity capital provided by the Central Government to LIC before the coming into force of the new section, application of premiums received on issue of LIC s shares, increase or reduction of share capital by the Central Government, making of reservation on a competitive basis in favour of LIC s life insurance policyholders who may be offered shares at a price lower than that offered to public, eligibility of all LIC shares acquired by the Central Government during three years preceding an initial public offer for computation of minimum promoter s contribution and of all fully paid-up equity shares of LIC held by the Central Government for an offer of sale by way of an initi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o insert new sections 19A, 19B, 19C and 19D in the LIC Act to provide for the constitution, composition and the powers, functions and duties of various committees of the Board, in order to bring the provisions relating to corporate governance in alignment with listing requirements. It is also proposed to substitute section 20 of the LIC Act to provide for entrustment and delegation of powers and duties of the Chairperson and Managing Directors of LIC by its Board, in order to bring the provisions relating to corporate governance in alignment with listing requirements. It is also proposed to amend section 22 of the LIC Act to omit the existing provision under sub-section (2) for constitution of a Board in each zone of LIC and to amend the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, and bring the provisions relating to the integrity of LIC s audit, accounting standards and compliance with the law and relevant standards in alignment with listing requirements. It is also proposed to insert new sections 25A, 25B, 25C and 25D in the LIC Act, to provide respectively for removal and resignation of auditor, powers and duties of auditor and auditor s report, internal auditor and special auditor, in order to bring the provisions relating to the integrity of LIC s audit, accounting standards and compliance with the law and relevant standards in alignment with listing requirements. It is also proposed to amend section 26 of the LIC Act to provide for substitution of the reference to the Corporation with reference to the Board, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Government. It is also proposed to substitute section 46 of the LIC Act, to provide that defects in constitution of the Board and committees thereof, or in appointment or nomination of directors, will not invalidate their acts or proceedings, which are matters incidental to the proposed creation of the Board and its committees under the proposed new sections 4, 19, 19A, 19B, 19C and 19D. It is also proposed to substitute section 47 in the LIC Act, to provide for protection of action taken by a director other than a whole-time director, which are matters incidental to the provision for independent, elected and other categories of non-whole-time directors under the proposed new section 4. It is also proposed to amend sub-section (2) of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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