TaxTMI 
TaxTMI 
Amendment of section 28.
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....her percentage as the Board may approve, of such surplus shall be allocated to or reserved for the life insurance policyholders of the Corporation; and (ii) such percentage of the remaining surplus as the Board may approve, shall be allocated to or reserved for members and may either be credited to a separate account maintained by the Corporation or be transferred to such reserve or reserves as the Board may specify; (b) for every financial year other than that referred to in clause (a),- (i) in respect of participating policyholders,- (I) ninety per cent., or such higher percentage as the Board may approve, of surplus relating to such policyholders, shall be transferred to the participating policyholders....
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....s than three years as the Board may deem fit, and such policy shall specify, among other things, the percentages referred to in sub-section (1).". - Clauses 119 to 137 of the Bill seek to amend certain provisions of the Life Insurance Corporation Act, 1956 (hereinafter referred to as "the LIC Act"). It is proposed to amend section 2 of the LIC Act so as to insert new clauses to define the expressions "Audit Committee", "Board of Directors" or "Board", "Chairperson", "Companies Act", "court", "director", "financial statement", "fully diluted basis", "independent director", "Managing Director", "Nomination and Remuneration Committee", "notification" and "special resolution", to amend the definition of expression "member", and to provi....
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....ransactions and adjudication of penalties for contravention 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 lo....
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.... Act, 1956 and listing requirements. It is also proposed to substitute section 19 of the LIC Act to provide for the constitution, composition and powers of the Executive Committee of the Board, in order to bring the provisions relating to corporate governance in alignment with listing requirements. It is also proposed to insert new sections 19A, 19B, 19C and 19D in the LIC Act to provide for the constitution, composition and the powers, functions and duties of various committees of the Board, in order to bring the provisions relating to corporate governance in alignment with listing requirements. It is also proposed to substitute section 20 of the LIC Act to provide for entrustment and delegation of powers and duties of the Chairpe....
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....ections 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 auditor's report, internal auditor and s....
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....ake provisions regarding the declaration of dividend and crediting of unclaimed and unpaid dividend amount to an Unpaid Dividend Account, in order to bring the provisions relating to dividends in alignment with listing requirements and consequential to the provision under the proposed new section 5 for issue of equity share capital to persons other than the Central Government. It is also proposed to substitute section 46 of the LIC Act, to provide that defects in constitution of the Board and committees thereof, or in appointment or nomination of directors, will not invalidate their acts or proceedings, which are matters incidental to the proposed creation of the Board and its committees under the proposed new sections 4, 19, 19A, 19B, 1....