Violation to Act regarding shareholding in Republic Insurance

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Violation to Act regarding shareholding in Republic Insurance

B Mirror Desk : Regarding ownership in Republic Insurance, which is traded on the stock exchange, the auditor discovered a violation of the Insurance Act. The auditor also discovered a violation of the Labor Act.

According to the auditor, the company’s most recent 2024 financial account audit discovered this anomaly.The auditor stated that entrepreneurs or directors must possess at least 60% of all general insurance companies in accordance with Schedule 1 of Section 21 of the Insurance Act 2010. On the other hand, 40.48% of people own Republic Insurance.

According to the auditor, Republic Insurance established the Workers’ Profit Participation Fund (WPPF) in 2014. However, Section 232 of the Labor Act of 2006 stipulates that the fund must be distributed within nine months of the fiscal year’s conclusion. However, by failing to distribute the funds to the employees, the insurance company authorities are denying them their just rights.

According to the auditor, this insurance company’s gratuity fund is not legally established.

 

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