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TMI BlogAmendment of section 28.X X X X Extracts X X X X X X X X Extracts X X X X ..... ch surplus shall be allocated to or reserved for the life insurance policyholders of the Corporation; and (ii) such percentage of the remaining surplus as the Board may approve, shall be allocated to or reserved for members and may either be credited to a separate account maintained by the Corporation or be transferred to such reserve or reserves as the Board may specify; (b) for every financial year other than that referred to in clause (a),- (i) in respect of participating policyholders,- (I) ninety per cent., or such higher percentage as the Board may approve, of surplus relating to such policyholders, shall be transferred to the participating policyholders fund, and shall be allocated to or reserved for the life insurance participating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to in sub-section (1). . - Clauses 119 to 137 of the Bill seek to amend certain provisions of the Life Insurance Corporation Act, 1956 (hereinafter referred to 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to corporate governance in alignment with listing requirements. It is also proposed to substitute section 5 of the LIC Act, to provide for LIC s capital, issue of 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Executive Committee of the Board, in order to bring the provisions relating to corporate governance in alignment with listing requirements. It is also proposed to 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw and relevant standards in alignment with listing requirements. It is also proposed to substitute section 25 of the LIC Act, to provide for appointment of auditors, 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 listi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ignment with listing requirements and consequential to the provision under the proposed new section 5 for issue of equity share capital to persons other than the Central 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 pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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