Section 51: Discontinue to hold the office of Director

1) No person shall continue to hold the office of a director in any of the following circumstances:

(a) If they are disqualified, pursue to Section 50,

(b) In cases where a motion to remove from the office of a Director is adopted by a majority of the General Meeting at the recommendation of the group from which he/she was appointed to the office of Director that is passed by the shareholders having representation of at least fifty-one percent of the shares of the same group,

Explanation: For the purpose of this Section, “group” means a group of promoters and shareholders from the general public.

(c)  If the resignation tendered by a director from their position is approved,

(d) If the Nepal insurance authority directs the removal of such person from the office, stating that they have carried out activities against the rights and interests of the insured or insurer.

2) If any insurance company has reasons to believe that any of its directors is disqualified from continuing to hold the office of director or any of its directors no longer holds his office, the insurance company shall give a written notice about such disqualification to the Nepal insurance authority within 15 days.

3) On receipt of written notice under sub-section (2), the Nepal insurance authority may issue necessary directions after necessary inquiry and examination.