Kathmandu. The Nepal Non-Life Insurance Entrepreneurs Association has once again drawn the attention of the concerned government bodies to the provision of not selling shares owned by directors for one year even after resigning. According to Rule 38 (1A) of the Securities Registration and Issue Regulations 2079 BS, the association has drawn the attention of the Securities Board, Insurance Authority and others to the provision that the organized director cannot buy and sell the shares of the concerned company while in office or for one year after retiring from such post.
A statement issued by the Non-Life Insurance Entrepreneurs Association said, “We inform you that the arrangement related to the sale of shares is very impractical. Like all the shareholders in the company, the directors are also investors and the provision of not selling shares on the basis of being elected from the general assembly of the shareholders and representing them to the board of directors on their behalf is not justified. Rajendra Malla, president of The Nepal Chamber of Commerce and Industry( NCC), said that they have requested the government to correct the provision as it is impractical to not sell the shares of the operators for one year.
Malla said that there is no difference between the financial interests of other shareholders of the company and the financial interests of the directors from the investment point of view. The association has said that it is not justified to deprive the directors of investing in the company at par with other shareholders. Chairman Malla said that in the situation where no businessman is able to sell his movable property, there will be obstacles in the enterprise, diversification of business and other essential household activities.
In a statement, the association said, “We request the government to amend the provision that no person can buy or sell any kind of shares of the same organization for one year as long as he remains in the post of director and removes from that post. Chairman Malla said that the latest arrangement related to the sale of shares will create problems in the investment environment and also affect foreign investment.
प्रतिक्रिया दिनुहोस्