TMI BlogSubstitution of section 24.X X X X Extracts X X X X X X X X Extracts X X X X ..... pating policyholders shall be credited and from which all payments to such policyholders shall be made: Provided that the members, by resolution in a general meeting, may exempt maintenance of such funds for one financial year at a time up to two financial years. Books of account, etc. 24A. (1) The Corporation shall prepare and keep at its central office books of account and other relevant books and records and financial statement for every financial year which give a true and fair view of the state of its affairs, including that of its zonal offices, and which explain the transactions effected both at the central office and at its zonal offices. (2) The Corporation shall prepare and keep at each zonal office of the Corporation, books of account and other relevant books and records and financial statement for every financial year which give a true and fair view of the state of affairs of every divisional office established in the zone corresponding to such zonal office and which explain the transactions effected thereat. (3) The Corporation shall prepare and keep at each divisional office of the Corporation, books of account and other relevant books and records a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to preparation of financial statements and auditor s report: ' Provided that the financial statements shall not be treated as not disclosing a true and fair view of the state of affairs of the Corporation, merely by reason of the fact that they do not disclose any matters which are not required to be disclosed by this Act or by the Insurance Act or by the Insurance Regulatory and Development Authority Act, 1999 (38 of 1999.) or by any other law for the time being in force. (2) At every annual general meeting, the Board shall place before such meeting financial statements for the preceding financial year. (3) The Corporation shall, in addition to financial statements provided under sub-section (2), prepare a consolidated financial statement of the Corporation and of all its subsidiaries and associate companies in conformity with the auditing standards referred to in sub-section (1) and the accounting standards applicable by law, and shall place the same before the annual general meeting, along with the placing of its financial statements under sub-section (2): Provided that the Corporation shall also attach along with its financial statements, a separate statem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of frauds reported by auditors; (d) a statement on declarations given by independent directors under the second proviso to sub-section (3) of section 4; (e) the Corporation s policy on directors appointment, including the criteria for determining qualifications, positive attributes and independence of a director, which are referred to in section 19B; (f) explanations or comments by the Board on every qualification, reservation or adverse remark or disclaimer made in the auditor s report; (g) particulars in respect of investments in terms of the provisions of section 27A of the Insurance Act as made applicable to the Corporation by notification issued under sub-section (2) of section 43; (h) particulars of contracts or arrangements with related parties, referred to in sub-section (1) of section 4C; (i) the state of the Corporation s affairs; (j) the amounts, if any, which are carried to any reserves; (k) the amount, if any, which it recommends should be paid by way of dividend; (l) material changes and commitments, if any, affecting the financial position of the Corporation, which have occurred between the end of the financial year to which the financi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orderly and efficient conduct of the Corporation s business, including adherence to its policies, safeguarding of its assets, prevention and detection of errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information. (3) The Board s report and any annexures thereto under sub-section (1) shall be signed on behalf of the Board by the Chairperson, a Managing Director and one director other than a whole-time director. Penalties. 24D. If the Chairperson or the Managing Director in charge of finance or the head of the finance function of the Corporation or any other person of the Corporation charged by the Board with the duty of complying with the provisions of section 24A or section 24B or section 24C contravenes any of the said provisions, such Chairperson or Managing Director or head of finance function or other person shall, for each section whose provisions have been contravened, be liable to pay penalty of a sum which shall not be less than fifty thousand rupees but which may extend to five lakh rupees. . - Clauses 119 to 137 of the Bill seek to amend certain provisions of the Life Insurance Corporation Act, 1956 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 initial public offer notwithstanding any ineligibility for such computation or any condition for a minimum holding period under any law for the time being in force, and issuing of other securities by LIC for raising funds to meet its business requirements. These amendments will enable issue of shares to the Central Government against paid-up capital invested by it in LIC as well as issue of bonus shares to the Central Government, which could be offered for sale by way of an initial public offer, with resultant receipt of money into the Consoli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iplicity of funds, establishment of reserves and maintenance of separate funds for participating and non-participating policyholders of LIC, which are matters incidental to the proposed new sections 28, 28B and 28C. It is also proposed to insert new sections 24A, 24B, 24C and 24D in the LIC Act, to provide respectively for books of account, financial statements, Board s report and penalties for contravention by person charged with the duty of complying with the provisions of new sections 24A or 24B or 24C, in order to bring the provisions relating to the integrity of LIC s accounting and financial reporting systems, control systems and compliance with the law 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 au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 section 48 of the LIC Act, to provide for making of rules by the Central Government relating to various matters that are either incidental to or consequent upon the various other amendments proposed in this Part. It is also proposed to amend section 49 of the LIC Act, to provide for making of regulations by the Board of LIC relating to various matters that are either incidental or consequent upon the various other amendments proposed in this Part. It is also proposed to insert new sections 50 and 51 in the LIC Act to provide for the form, manner, etc. for companies to apply with modifications to LIC, and to provide for the power of the Central Government to remove difficulties by order published in the Official Gazette, which are matters incidental to the various other amendments proposed in this Part. These amendments will take effect from such dates as the Central Government may, by notification in the Official Gazet ..... X X X X Extracts X X X X X X X X Extracts X X X X
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