Question

    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?
    A Rupees two hundred crores, with no provision for change Correct Answer Incorrect Answer
    B Rupees two hundred and fifty crores, with the option to increase or reduce it Correct Answer Incorrect Answer
    C Rupees five crores, with no provision for change Correct Answer Incorrect Answer
    D Rupees two hundred and fifty crores, fixed without any changes Correct Answer Incorrect Answer
    E Rupees five crores, with the option to reduce it Correct Answer Incorrect Answer

    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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