Question

    Under the General Insurance Business (Nationalisation)

    Act, how is the payment for the transfer and vesting of shares to the Central Government made?
    A Paid directly to shareholders Correct Answer Incorrect Answer
    B Paid based on market value Correct Answer Incorrect Answer
    C Paid by the insurance company Correct Answer Incorrect Answer
    D Paid based on employee count Correct Answer Incorrect Answer
    E Paid to the Corporation for distribution to shareholders Correct Answer Incorrect Answer

    Solution

    Explanation:Section 11.    Amounts  to  be  paid  for  transfer  and  vesting  of  shares  or undertakings: (1) For the transfer of the shares of each Indian insurance company to, and vesting in, the Central Government, under section 4, there shall be paid by the Central Government to the Corporation, for distribution to the shareholders of each such company, the amount specified against such company in the corresponding entry under column (3) of Part A of the Schedule.

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