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Section 44
Allotment of shares

(1) An insurer shall set aside at least thirty percent of its total issued capital for sale to the general public. But an insurer registered as a branch office of a foreign insurance company is not allowed to issue and sell shares. (2) The share insurer may allocate up to five percent of the shares allocated to the general public as per sub-section (1) for its employees.
(3) With the approval of the Authority, the Insurer may/may convert the remaining share into a general share group, provided that the ownership of the founding share group is not less than one hundred percent. (4) Notwithstanding anything written elsewhere in this section, the provisions relating to shares of insurers established under the ownership of the Government of Nepal or the Provincial Government shall be as prescribed by the Government of Nepal.
(5) Allotment of shares of the insurer and other arrangements related to sale and distribution shall be in accordance with the prevailing federal law on securities.