Question
Under the General Insurance Business (Nationalisation)
Act after making provision for bad and doubtful debts, depreciation in assets, provident, superannuation, welfare, and other funds, debts due to the Government what is the requirement for every acquiring company?Solution
Section 20. Balance of profit how to be utilised: (1) After making provision for bad and doubtful debts, depreciation in assets, provident, superannuation, welfare and other funds, debts due to Government and all other matters for which provision is necessary under any law or which are usually provided for by insurance companies, every acquiring company shall distribute the balance of profit as dividends.
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