Insurance Authority Orders Five Microinsurers to Convene Special General Meetings

Kathmandu – Five microinsurance companies whose directors and chief executives have been suspended over insurance and securities-related offences have been instructed to convene Special General Meetings (SGMs) immediately.

The Nepal Insurance Authority (NIA) issued the directive after the companies failed to appoint even acting chief executives despite more than two weeks having passed since their top executives and board members were suspended. The delay has reportedly triggered growing dissatisfaction among employees, some of whom have lodged complaints with the regulator.

The Authority said the SGMs must be held without delay to ensure the companies continue operating smoothly and that their governance and decision-making processes are restored.

According to the regulator, the suspension of chairpersons, directors, and CEOs in connection with various offences has had a direct impact on the management and day-to-day functioning of the companies, making immediate corrective action necessary.

The directive applies to Guardian Micro Life Insurance, Protective Micro Insurance, Liberty Micro Life Insurance, Crest Micro Insurance, and Nepal Micro Insurance. The companies have been instructed to convene SGMs in accordance with Section 82 of the Companies Act and to implement Sub-clause (3) of Clause 33 of the NIA’s Corporate Governance Directive.

Under the Companies Act, a Special General Meeting may be convened within 30 days upon a request stating the reasons, made either by shareholders holding at least 10% of the company’s paid-up capital or by shareholders representing at least 25% of the total number of shareholders.