What is the authorised capital of the Corporation as per the General Insurance Business (Nationalisation ) Act, and what flexibility does the Central Government have regarding it?

Q: Answer-What is the authorised capital of the Corporation as per the General Insurance Business (Nationalisa...

ExplanationSection 9. Formation of General Insurance Corporation of India2 The authorised capital of the Corporation shall be 2rupees two hundred and fifty crores, divided into two hundred and fifty lakhs fully paid-up shares of one hundred rupees each, out of which rupees five crores shall be the initial subscribed capital of the CorporationProvided that the Central Government may, by notification, increase or reduce the authorised capital or subscribed capital, as the case may be, as it deems fit.

A Rupees two hundred crores, with no provision for change Correct Incorrect

B Rupees two hundred and fifty crores, with the option to increase or reduce it Correct Incorrect

C Rupees five crores, with no provision for change Correct Incorrect

D Rupees two hundred and fifty crores, fixed without any changes Correct Incorrect

E Rupees five crores, with the option to reduce it Correct Incorrect

Detailed Solution

Explanation:Section 9. Formation of General Insurance Corporation of India:(2) The authorised capital of the Corporation shall be 2[rupees two hundred and fifty crores, divided into two hundred and fifty lakhs fully paid-up shares] of one hundred rupees each, out of which rupees five crores shall be the initial subscribed capital of the Corporation:Provided that the Central Government may, by notification, increase or reduce the authorised capital or subscribed capital, as the case may be, as it deems fit.

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What is the authorised capital of the Corporation as per the General Insurance Business (Nationalisation ) Act, and what flexibility does the Central Government have regarding it?

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