Law:

Section:

Insurance Companies (Sound and Prudent Management) Regulations, 2012--- ----Regln. 2(2)---Insurance Ordinance (XXXIX of 2000), Ss.11(1)(f), 12(1)(b), 63 & 156---Election of Directors of company---Duty of directors---Company, held the election of Directors in the Annual General Meeting, without obtaining the approval from the Commission---Validity---Company and its Directors were required to seek approval of the Commission before election of the company as required under Regln.2(2) of Insurance Companies (Sound and Prudent Management) Regulations, 2012 and Ss.11(1)(f) and 12(1)(b) of Insurance Ordinance, 2000---Directors, in addition to the day-to-day running of the company and the management of its business, also had some fiduciary duties i.e., duties held in trust and some wider duties imposed by statute and breach of those statutory duties would usually be a criminal offence, punishable by fine or imprisonment---Directors were gauged against a higher standard of accountability which required them to be vigilant and perform their duties with due care---In the present case, the persons elected and acting as "Directors" of the company had failed to perform their duties with due care and prudence---Default committed was prolonged/continued---Company and the persons appointed as the Directors and the Chief Executive of the company, however, unintentionally contravened the provisions of Regulations and Ordinance--- Such was merely an oversight on the part of the company, and the Directors---Commission vide its letter, had granted the approval of five persons to act as Directors of the company---Default of the company, having been established, penalty could be imposed on the company and/or the Director---Commission, in exercise of the powers conferred on it under Ss. 63(1) & 156 of the Insurance Ordinance, 2000, instead of directing the company to cease entering into new contracts of insurance, or even imposing the penalty to the company, and/or its Directors (including the Chief Executive) took a lenient view, and condoned the company and its Directors (including the Chief Executive), in circumstances. ORDER (Under Regulation 2(2) of the Insurance Companies…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492