Nepal Life Calls Annual General Meeting; Dividend Approval and Key Agendas Announced
14th December 2025, Kathmandu
Nepal Life Insurance Company has announced the convening of its 26th Annual General Meeting (AGM) following a decision made during the company’s Board of Directors meeting held on Friday.
Nepal Life Calls AGM
This AGM is a significant event for the company and its investors, featuring crucial agendas including dividend approval and key governance decisions.
The meeting is scheduled to take place on January 3, 2026. The venue for the AGM has been set at Hotel Vishuwa in Birgunj, Parsa, with the proceedings commencing at 9:00 AM. This regional location for the meeting is a notable move, ensuring engagement with shareholders outside the Kathmandu Valley.
Dividend Proposal and Capital Restructuring
A central focus of the 26th AGM will be the endorsement of the dividend proposed for the fiscal year 2024/25, a decision that will directly impact shareholder returns and the company’s capital structure.
Total Dividend Rate: The AGM will endorse a total proposed dividend equivalent to 21.05 percent of the company’s current paid-up capital. This rate is reflective of the company’s financial performance and profitability in the highly competitive life insurance sector.
Dividend Composition: The total dividend package is split into two components:
Bonus Shares: 5 percent bonus shares will be issued. The distribution of bonus shares, which are new shares given to existing shareholders, serves to capitalize the company’s distributable profits and increase its permanent equity base.
Cash Dividend: A 16.05 percent cash dividend will be distributed. This cash component is inclusive of the dividend tax that must be paid on the total dividend amount.
Post-Dividend Capital Increase: Following the distribution of the 5 percent bonus shares, the AGM will be required to pass a special resolution to formally increase the paid-up capital of the company, reflecting the capitalization of the profits. This necessary legal step ensures the company’s capital structure is compliant with the increased equity base.
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Key Governance and Regulatory Amendments
Beyond the dividend, the AGM holds several critical governance and compliance items on its agenda that are essential for the company’s long-term operational and regulatory standing.
Constitutional Amendments: As proposed by the Board of Directors, the AGM will seek approval for necessary amendments to the Memorandum of Association and the Articles of Association. These foundational documents govern the company’s existence and operations. Specifically, the amendments include changes related to the company’s objectives, likely reflecting strategic shifts or updates required under the latest Insurance Act, 2079.
Board Authorization: A significant mandate involves the shareholders granting authorization to the Board of Directors to make any further revisions or adjustments to the Memorandum and Articles of Association as may be required or directed by the regulatory authorities, ensuring swift compliance without needing to call another general meeting.
Director Election: The AGM will be responsible for the election of three directors who represent the promoter shareholders (Group “A”) to the Board of Directors. This election is crucial for maintaining the composition and stability of the board and ensuring promoter representation.
Financial and Audit Approvals: The meeting will approve the annual report and the audited financial statements of the previous fiscal year, 2024/25. Furthermore, the AGM must endorse the appointment of an external auditor for the subsequent fiscal year, 2025/26, and fix the remuneration to be paid to the auditor for their services.
Eligibility Criteria and Book Closure
For the purposes of determining eligibility for the dividend and participation in the AGM, the company has announced a specific book closure date.
Book Closure Date: The company has decided to close its books on December 22, 2025.
Eligibility: Accordingly, only those shareholders whose names are registered in the company’s records on or before December 22, 2025, will be deemed eligible to receive the proposed dividend and attend the 26th Annual General Meeting. This marks the last date for share transactions to be executed and settled for entitlement to the announced benefits.
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