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The current administrator of Delta Life Insurance Company has been relieved by the Insurance Development and Regulatory Authority (IDRA). The reconstituted 8-member board of directors will be taking responsibility for the management of the company from Tuesday.
On Monday, regulatory agency IDRA sent two separate letters, one to the current administrator of the company Kuddus Khan and the other to the reconstituted board chairman Hafiz Ahmed Majumdar. The letter was signed by IDRA Executive Director SM Shakeel Akhtar.
According to the letter, following the order of the Appellate Division of the Supreme Court on August 22, according to section 99 of the Insurance Act 2010, the administrator of Delta Life Kuddus Khan has been relieved of the post of administrator and the order has been issued terminating the appointment of the administrator, with effect from September 20, 2022.
In this situation, as the administrator of Delta Life Insurance Company, Kuddus Khan was instructed to take the necessary measures to hand over all the activities of the company’s administration to the reconstituted board of directors.
On February 11, 2021, the Board of Directors of Delta Life was suspended by IDRA. Sultan-ul-Abedin Mulla, a former member of the authority, was appointed the administrator. The administrator was changed 3 times in the last one and a half years.
In a meeting held at the IDRA office on July 24 this year, a decision was taken to form a new board of directors of the company through consensus. Senior officials of IDRA, the Financial Institutions Department, as well as the suspended board members and new board members of Delta Life were present at the meeting.
Then on August 22, the Appellate Division of the Supreme Court approved the compromise agreement for the formation of the Board of Directors of Delta Life. A bench of Justice Hasan Faiz Siddique, Justice Obaidul Hasan and Justice M Enayetur Rahim gave this approval after the hearing.
The letter also announced the names of the reconstituted board of directors. Among them, Hafiz Ahmed Majumdar and Dr Md Jonaid Safiq will be the chairman and vice-chairman of the company respectively.
Suraiya Rahman, Adeeba Rahman, Chaklader Rezanul Alam, Sakib Aziz and Zeyad Rahman will continue to serve as members of the board of directors of the company.
In the letter, 9 conditions have been imposed on the management of the insurance company. These conditions include- carrying out all activities by the board of directors in accordance with prevailing laws, appointing an efficient and acceptable chief executive officer expeditiously, strictly following the rules and regulations imposed by the Insurance Act, etc.
Apart from this, the reconstituted Board of Directors may take measures to hold the next Annual General Meeting of the Company by December 31, 2022. An appropriate representative of the Ministry (not below the joint secretary) will be appointed as an observer on the board of directors.
