Section 44: Allotment of Shares

1) The insurer shall set aside at least thirty percent of its total issued capital for subscription to the general public.

Provided that insurers registered as branch offices of foreign insurers shall not issue and sell their shares.

2) The insurer may allocate five percent of the shares set aside for the general public to its employees pursuant to sub-section (1).

3) The insurer may reduce the shareholding of the promoter shareholders to not less than fifty-one percent of the total issued share capital by converting the remaining shares to public shares.

4) Notwithstanding anything mentioned elsewhere in this section, the provision related to the allotment of shares of insurance companies incorporated with ownership of the Government of Nepal or the provincial government shall be as prescribed by the Government of Nepal.

5) Other provisions related to the issue and allotment of shares of the insurer shall be as prescribed in the prevailing acts related to securities.