The dividend proposal got cancelled as the company announced it without taking pre-approval from Nepal Insurance Authority (NIA).
Surya Prasad Silwal, Chairman of NIA said to Merolagani “Citizen Life did not take pre-approval before announcing the dividend which is against the rule. Therefore, the company will be penalized.
Silwal elaborated that the company can not announced dividend twice in a year. Thus, a NIA meeting will decide how to penalize the company.
Silwal said that the authorized persons of the company have been called out for a meeting in NIA. After the meeting the dividend proposal will be cancelled.
On Monday, the company proposed of distributing 26.98 percent stock and 1.42 percent cash dividend to its shareholders.
