Rastriya Beema Company Concludes AGM; Shareholders Raise Concerns Over Reinsurance

Kathmandu – The second annual general meeting of the government-owned Rastriya Beema Company Limited was held at Anmol Catering Services Pvt. Ltd., Shankhamul, Kathmandu today, where shareholders raised critical concerns over the company’s financial management and practices.

A significant issue discussed was the failure to re-insure the Upper Tamakoshi Hydropower Project. Shareholders questioned why the project, which insured a substantial amount with the company, was not re-insured, leaving the company vulnerable to significant losses from the floods and landslides of last September. This oversight is expected to cost the company billions of rupees.

Shareholders also expressed dissatisfaction with the company’s declining share price in the secondary market, attributing it to the burden of potential liabilities. Many called for action against employees responsible for the reinsurance lapse.

Concerns extended to the approval of director allowances, with shareholders questioning the increase in meeting and monthly allowances during financially challenging years. Many also voiced frustration over the prolonged absence of dividends, reflecting declining confidence in the company’s financial direction.

Chairman Dinesh Upadhyaya acknowledged the mistake regarding the reinsurance of Upper Tamakoshi and assured shareholders that a detailed explanation would be provided at the next meeting.

Despite these concerns, the meeting approved the company’s annual reports for fiscal years 2073/74 and 2074/75, as well as director allowances of NPR 6,000 per meeting and a monthly allowance of NPR 12,000. The appointment and remuneration of auditors for fiscal years 2075/76 to 2078/79 were also approved.