Section 14
Amount payable to shareholders may be paid to named persons instead in certain cases.
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 elsewhere in this Act, if a majority in number of the
persons, who, immediately before the appointed day, were registered in the books of an Indian insurance
company as the members thereof, and representing two-thirds in value of the amount payable to the
Indian insurance company, agree either in person or by proxy at a meeting specially convened for the
purpose that the amount so payable instead of being distributed among the members shall be given to any
such person or body of persons as the members may nominate either at that meeting or subsequently for
the purpose of carrying on any business, and the Central Government is satisfied that due provision has
been or will be made for the payment of the value of their respective shares to persons who have
dissented from the reasolution, the amount may be given to the person or body of persons so nominated in
such manner and subject to such conditions as the Central Government may think fit.
(2) No resolution passed at any such meeting as is referred to in sub-section (1) held after the appointed day shall have any effect unless the meeting has been convened after obtained the approval of the Central Government.
(2) No resolution passed at any such meeting as is referred to in sub-section (1) held after the appointed day shall have any effect unless the meeting has been convened after obtained the approval of the Central Government.