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Business News/ Companies / News/  LIC makes changes in framework for the selection of shareholder' directors for its board
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LIC makes changes in framework for the selection of shareholder' directors for its board

LIC has introduced changes in its framework for the appointment of shareholders' directors to its board. The tenure for the post will be four years and the person would be eligible for re-appointment

Life Insurance Corporation of India has amended norms for inclusion of shareholders' directors on boardPremium
Life Insurance Corporation of India has amended norms for inclusion of shareholders' directors on board

LIC has amended a framework to allow the induction of shareholders' directors on its board, said the state-owned insurer on Saturday. 

“Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby intimate that the Life Insurance Corporation of India (shareholders' director) Regulations, 2023 have been notified in the Gazette of India on December 1, 2023," said the life insurance company in its stock exchange filing on Saturday. 

Also Read: LIC introduces a new plan named Jeevan Utsav; all you need to know

The board of directors will appoint a shareholders' director for a 4 years tenure. The person holding the position would be eligible for an extension of his tenure for four more years, mentioned LIC in its Gazette notification. 

Also Read: LIC stock rallied 10% last week, analysts raises target price; Do you own?

LIC was one of the most expensive and buzzing IPOs listed on the bourses last year. The government raised 20,557 crore by diluting its 3.5 percent stake in the company.

LIC shares closed 1.38% lower at 670.15 per share on BSE on Friday. The company share value has increased by 11.67% in the last month. 

LIC framework for the addition of shareholder's directors on the board

Life Insurance Corporation of India (shareholders' director) Regulations, 2023, was notified in the Gazette of India on December 1, 2023.

According to the regulation, the LIC corporation would, upon notice of not less than one thousand shareholders or one-tenth of the total number of shareholders (whichever is lower), elect a shareholders' director through a general meeting of such shareholders. 

After the appointment, the shareholder's director cannot hold a similar position in more than two companies at the same time, clarifying the corporation in its notification. 

The person, appointed for the post, would be eligible for re-election and reappointment after the completion of his tenure of four years. At present, LIC has five executive directors, including Chairman Siddhartha Mohanty, nine independent directors, and one government nominee Director MP Tangirala.:

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Published: 03 Dec 2023, 11:52 AM IST
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