As per the new Insurance Act, the Corporation is required to convert into a public company within one year of the establishment of the Insurance Authority. Along with this, all employees, current as well as fixed assets and liabilities of the corporation will belong to the company per se.
Similarly, the act mentions that all insurance policies will be treated as issued by the converted company.
The implementation of the Act has forced the company to maintain the minimum paid-up capital which was overlooked before by the company due to the exercise of Rastriya Beema Sanstha Act.
Currently, Santha has a paid-up capital of Rs 181 million. It is required to maintain minimum paid-up capital of Rs 5 billion after conversion to a company.
The company is required to add Rs 4.81 billion to its capital. The company has planned to issue ordinary shares to the general public to meet the capital.
Right now, the company has 27.78 percent share ownership of the government. Similarly, Nepal Rastra Bank has 55.55 percent and Nepal Bank has 16.67 percent ownership in the company.
