Staff Reporter :
The High Court on Sunday issued a rule upon the respondents to explain in four weeks as to why the Rule 3(5) of the Insurer’s Capital and Holding of Share Rules, 2016, should not be declared illegal.
The rule 3(5) said no person or members of his family or company can
individually or collectively hold more than 10 per cent shares in an insurer.
The High Court bench of Justice Tariq ul Hakim and Justice Md Iqbal Kabir passed the order after holding hearing a writ petition filed by two share holders of Delta Life Insurance Company Limited.
In the rule the court also wanted to know as to why the rules 4(1), 4(2) and 4(3) of the said rule providing for compulsory sale and acquisition of such excess shares should not be declared illegal and as to why the memo issued by Insurance Development and Regulatory Authority (IDRA) asking Delta Life Insurance to provide particulars of shareholding of shareholders belonging to the same family should not be declared illegal.
Finance secretary, law secretary, insurance development and regulatory authority, director of appointments branch of insurance development and regulatory authority and six other respondents have to comply with the rule within four weeks.
In its order, the court also stayed the operation of the memo issued by the Insurance Development and Regulatory Authority on February 6 this year asking Delta Life Insurance to provide particulars of shareholding of shareholders belonging to the same family within three working days.
Barrister Rokanuddin Mahmud appeared in the court on behalf of the petitioners while deputy attorney general Amit Das Gupta stood for the state.
Monzurur Rahman, a sponsor shareholder and former chairman and director of Delta Life Insurance Company Limited and Zeyad Rahman, another director of the same institution, filed the petition with the High Court on February 19, 2020.
The High Court on Sunday issued a rule upon the respondents to explain in four weeks as to why the Rule 3(5) of the Insurer’s Capital and Holding of Share Rules, 2016, should not be declared illegal.
The rule 3(5) said no person or members of his family or company can
individually or collectively hold more than 10 per cent shares in an insurer.
The High Court bench of Justice Tariq ul Hakim and Justice Md Iqbal Kabir passed the order after holding hearing a writ petition filed by two share holders of Delta Life Insurance Company Limited.
In the rule the court also wanted to know as to why the rules 4(1), 4(2) and 4(3) of the said rule providing for compulsory sale and acquisition of such excess shares should not be declared illegal and as to why the memo issued by Insurance Development and Regulatory Authority (IDRA) asking Delta Life Insurance to provide particulars of shareholding of shareholders belonging to the same family should not be declared illegal.
Finance secretary, law secretary, insurance development and regulatory authority, director of appointments branch of insurance development and regulatory authority and six other respondents have to comply with the rule within four weeks.
In its order, the court also stayed the operation of the memo issued by the Insurance Development and Regulatory Authority on February 6 this year asking Delta Life Insurance to provide particulars of shareholding of shareholders belonging to the same family within three working days.
Barrister Rokanuddin Mahmud appeared in the court on behalf of the petitioners while deputy attorney general Amit Das Gupta stood for the state.
Monzurur Rahman, a sponsor shareholder and former chairman and director of Delta Life Insurance Company Limited and Zeyad Rahman, another director of the same institution, filed the petition with the High Court on February 19, 2020.
