Shareholders urge govt to appoint administrator for Delta Life Ins
Thursday, 26 July 2007
General shareholders of Delta Life Insurance Company urged the government Wednesday to help appoint an administrator to the company by moving court again to overturn a stay order, reports bdnews24.com.
The High Court last month stayed the government's move to appoint an administrator to Delta Life, which ran into irregularities due mainly to internal conflicts among directors.
For the last two years the company has failed to hold AGMs, prepare audited financial statements and actuarial valuation reports, disburse bonuses to policy holders and raise paid up capital as per law, according to the Office of the Chief Controller of Insurance.
The stay order came after Delta Life filed a writ petition in mid-June challenging the regulator's move to appoint administrator.
The controller of insurance suggested in May that the government appoint an administrator to protect the interests of policyholders and shareholders of Delta Life.
"They have deprived us of our right to dividends for the last three years by filing cases themselves," Khadim Hossain Chowdhury, a general shareholder of Delta Life, said at a press conference.
Chowdhury along with other shareholders alleged that they were deprived of dividends including the announced 30 percent cash and 20 percent stock dividends for 2004.
"There is no alternative to appointing an administrator to protect the company from bankruptcy," he said.
"As a regulator, I am keeping my fingers crossed. We are trying to vacate the stay order so that we can salvage the company," Dr Mahfuzul Haque, chief controller of insurance, told bdnews24.com Wednesday.
Delta Life has over Tk 100 billion in life funds, according to the regulator. But policyholders and shareholders are being deprived because of the company's failure to hold AGMs and conduct valuation reports, Haque said.
According to a letter sent to the commerce ministry by the insurance regulator, Delta Life has held AGMs or disbursed dividends for the last two years.
It has also failed to submit audited financial statements since 2004, which in turn halted preparation and submission of actuarial valuation reports, and failed to raise its paid-up capital to Tk 75 million from Tk 30 million as required by law.
The High Court last month stayed the government's move to appoint an administrator to Delta Life, which ran into irregularities due mainly to internal conflicts among directors.
For the last two years the company has failed to hold AGMs, prepare audited financial statements and actuarial valuation reports, disburse bonuses to policy holders and raise paid up capital as per law, according to the Office of the Chief Controller of Insurance.
The stay order came after Delta Life filed a writ petition in mid-June challenging the regulator's move to appoint administrator.
The controller of insurance suggested in May that the government appoint an administrator to protect the interests of policyholders and shareholders of Delta Life.
"They have deprived us of our right to dividends for the last three years by filing cases themselves," Khadim Hossain Chowdhury, a general shareholder of Delta Life, said at a press conference.
Chowdhury along with other shareholders alleged that they were deprived of dividends including the announced 30 percent cash and 20 percent stock dividends for 2004.
"There is no alternative to appointing an administrator to protect the company from bankruptcy," he said.
"As a regulator, I am keeping my fingers crossed. We are trying to vacate the stay order so that we can salvage the company," Dr Mahfuzul Haque, chief controller of insurance, told bdnews24.com Wednesday.
Delta Life has over Tk 100 billion in life funds, according to the regulator. But policyholders and shareholders are being deprived because of the company's failure to hold AGMs and conduct valuation reports, Haque said.
According to a letter sent to the commerce ministry by the insurance regulator, Delta Life has held AGMs or disbursed dividends for the last two years.
It has also failed to submit audited financial statements since 2004, which in turn halted preparation and submission of actuarial valuation reports, and failed to raise its paid-up capital to Tk 75 million from Tk 30 million as required by law.