TaxTMI 
TaxTMI 
Substitution of section 24.
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....which all receipts from non-participating 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 Corpora....
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....surance business and subject to any regulations made by the Authority under the Insurance Act relating 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 ....
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....ents placed before general meeting, a report by the Board, which shall include- (a) number of meetings of the Board; (b) a Directors' Responsibility Statement; (c) details in respect 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) ....
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....nd were operating effectively; and (f) proper systems were devised to ensure compliance with the provisions of applicable laws and were operating effectively. Explanation.-For the purposes of this sub-section, the expression "internal financial controls" means the policies and procedures adopted for ensuring the 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 Directo....
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....n or violation liable to penalty under the LIC Act, in order to bring the provisions relating 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 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 securitie....
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.... insert new section 23A in the LIC Act, to provide for annual general meeting and other general meetings of registered shareholders of LIC, in order to bring the provisions relating to the rights of LIC's shareholders in alignment with listing requirements. It is also proposed to substitute section 24 of the LIC Act, to provide for LIC having a multiplicity 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 brin....