The insurance regulator has raised corporate governance concerns over the government’s move to appoint one person as chairman of two state-run insurers.
The government had sought Insurance Regulatory and Development Authority of India’s (Irdai) approval to appoint Anjan Dey as acting chairman of New India Assurance, a charge he already holds at New Delhi-based Oriental Insurance.
“The regulator has also cited section 203 of the Companies Act, expressing its disapproval,” said a person in the know. Irdai did not respond to ET’s email.
Irdai shared its concerns last week after the government sought its formal nod for the appointment. Section 203 of the Companies Act says a whole-time managerial personnel shall not hold office in more than one company except in its subsidiary.
This can be allowed if it is approved by a resolution with consent of all the company’s board of directors. “There has been no such resolution passed by either Oriental or New India Assurance,” the executive quote above said.
