Kathmandu, Sept. 3
The General
Insurance Association of Nepal (GIAN) has drawn the attention of the Securities
Board of Nepal(SEBON) to the provision that the shares owned by the directors of
the company cannot be sold for one year.
According to rule
38(1a) of the Securities Registration and Issue Regulation, 2079, the
arrangement that the directors cannot buy and sell the shares of the related
company during their tenure in office or for one year after they have retired
from such office is impractical, they said.
"We would
like to inform that the provision related to the sale of shares is very strict.
It is not fair to discriminate against them so harshly as the directors are
also investors like all the remaining shareholders in the company and they are
elected by the general meeting of the shareholders and represented in the board
of directors on their behalf," the GIAN said in a statement on Tuesday.
A team of GIAN led
by its President Rajendra Malla which included Vice-president Manohardas Mul,
General Secretary Mahendra Krishna Shrestha, Treasurer Ramesh Niraula and members
Azad Shrestha and Kunal Kayal requested Chairman of the SEBON, Mahesh Baral to
correct that provision.
"From the
point of view of investment, there is no difference between the financial
interests of the other shareholders of the company and the financial interests
of the directors," said Malla.
The association
has mentioned that depriving the directors of using the investment they made in
the company like other shareholders is not fair.
Malla also said
that if a businessperson cannot sell his movable property, there will be an
obstacle in the diversification of business and essential household work.
The NGIA has requested
the SEBON to make a new provision that would allow the selling of up to 50 per cent
of the share ownership while holding the position of director.
Published in The Rising Nepal daily on 4 September 2024.
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