Kathmandu. Chief Executive Officer (CEO) of Asian Life Insurance, Dinesh Lal Shrestha has bought double the number of shares of City Hotels Limited.
The Board of Directors of Asian Life Insurance has decided to authorize CEO Shrestha to buy up to 1 million units of undistributed right shares of any listed public limited company. CEO Shrestha bought 20 lakh units of undistributed shares of City Hotels through bidding, which is more than double the authority given by the Board of Directors.
Asian Life buys shares of its own founder’s company in violation of Insurance Act
On Sunday, the board of directors of the company submitted a decision to purchase 10 lakh units of shares by accepting different amounts through different applications. All three applications include minutes of the decision of the Board of Directors of the Board of Directors on July 25, 2002 in the same language and manner.
Out of the total 21,50,418 units of undistributed shares of City Hotels, Asian Life Company has acquired 20 lakh units. The company had quoted the highest price to buy the shares.
NEA seeks clarification from Asian Life Insurance on share purchase of City Hotels
This case of overstepping the authority given by the Board of Directors proves that the corporate governance in Asian Life is in a very poor state.
