Section 21
Interim provisions for management of Indian insurance companies.
The General Insurance Business (Nationalisation) Act, 1972
About this Act
An Act to provide for the acquisition and transfer of shares of Indian insurance companies and undertakings of other existing insurers in order to serve better the needs of the economy by securing the development of general insurance business in the best interests of the community and to ensure that the operation of the economic system does not result in the concentration of wealth to the common detriment, for the regulation and control of such business and for matters connected therewith or incidental thereto.
(1) Notwithstanding
anything contained in the Companies Act or in the memorandum and articles of association of any Indian
insurance company, on and from the appointed day and until a new board of directors of the Indian
insurance company is duly constituted, the management of the company shall continue to vest in the
Custodian in charge of the management of the undertaking of that company immediately before the
appointed day by virtue of the provisions contained in the General Insurance (Emergency Provisions) Act,
1971 (17 of 1971), and the Custodian shall be entitled, subject to such directions as the Central
Government may issue in this behalf, to exercise all the powers and do all acts and things as may be
exercised or done by the company or by its board of directors.
(2) Nothing contained in sub-section (1) shall be deemed to prevent the Central Government from appointing any other person to take charge of the management of the undertaking of any Indian insurance company during the period referred to in that sub-section if for any reason it becomes necessary so to do, and any person so appointed may exercise all the powers and do all acts and things which a Custodian may exercise or do under sub-section (1).
(3) The Custodian referred to in sub-section (1) and the person appointed under sub-section (2) shall be entitled to such salaries and other allowances as the Central Government may specify in this behalf and shall hold office during the pleasure of the Central Government.
(2) Nothing contained in sub-section (1) shall be deemed to prevent the Central Government from appointing any other person to take charge of the management of the undertaking of any Indian insurance company during the period referred to in that sub-section if for any reason it becomes necessary so to do, and any person so appointed may exercise all the powers and do all acts and things which a Custodian may exercise or do under sub-section (1).
(3) The Custodian referred to in sub-section (1) and the person appointed under sub-section (2) shall be entitled to such salaries and other allowances as the Central Government may specify in this behalf and shall hold office during the pleasure of the Central Government.