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    Question

    What happens to the shares of an Indian insurance

    company upon the appointed day according to the General Insurance Business (Nationalisation) Act?
    A They are transferred to the company's management Correct Answer Incorrect Answer
    B They are transferred to the Central Government free of all encumbrances Correct Answer Incorrect Answer
    C They are transferred to the state government Correct Answer Incorrect Answer
    D They remain with the shareholders Correct Answer Incorrect Answer
    E They are liquidated and converted into cash Correct Answer Incorrect Answer

    Solution

    Explanation:Section  4.  Transfer  of  shares  of  Indian  insurance  companies: (1)  On  the appointed day, all the shares in the capital of every Indian insurance company shall, by virtue of this Act, stand transferred to and vested in the Central Government free of all trusts, liabilities and encumbrances affecting them.

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