Directors Report - 2016

 

Bismillahir Rahmanir Rahim

Honourable Shareholders

Assalamu Alikum

 

I have the pleasure to welcome you all on behalf of the board of directors of City General Insurance Company Limited in its 21st Annual General meeting. I present before you the Directors Report, Audited Balance sheet, Profit & Loss Account, Profit & Loss Appropriation Account, Revenue Account together with Auditors report for the year ended December 31, 2016.

 

Business environment and Performance :

You know insurance market is competitive in Bangladesh and we do business at tough competition. Even in such situation, business performance in 2016 is satisfactory.

Honorable shareholders, you know, Department of insurance is entrusted with Ministry of Finance from Ministry of Commerce. Insurance Act 2010, Insurance Development & Regulatory Authority Act 2010 and Rules have been promulgated and insurance Development & Regulatory Authority started their operation since January 2011. Due to their specific principle and strong supervision, positive changes are seen in the insurance industry.

 

Claim :

Honorable shareholders, you are acquainted with that insurance is a business in full of risk. Flood, Cyclone like natural climates and related to various accident, all ingredients are beyond of human control. In spite of this, due to our prudence underwriting, insurance claim is in our control.

 

Investment :

 Investment is in satisfactory position till 2016 which has been reflected in our Financial Statements.

 

Dividend :

Dear shareholders, considering the overall performance of the company, Board of Directors are very much sincere to allot fair percentage of dividend to you. You will be glad to know, Board of directors has recommended 10% Cash dividend out of net profit for the year 2016 to all shareholders including sponsor shareholders .

 

Election of Directors :

 (A)         As per Article 112 of Articles of Association of the Company the following 02 (Two) Sponsor Directors will retire from board by rotation at 21st Annual  General  Meeting and being eligible as  per Article 114 offer themselves for re- election.

 

  1. Mrs. Bibi Amena
    1. Mr. Mohammad Amanullah (Representative of Wazeefa Acrylic Spinning Mills Ltd.)

 

(B)         As per Article 112 of Articles of Association of the Company the following 02 (Two)  public shareholder Directors will retire  :

 

  1. Mrs. Salina Tareq, (Nominated by Anwar Cement Ltd.)
  2. Mr. Satyendra Nath Basak, (Nominated by Anwar Landmark Ltd.)

 

Accordingly these posts will be filled by election. Necessary Notice related to election of Directors from all shareholders have already been published on April 14, 2017 in the “Dainik Banik Barta” and “The News Today”.

 

Appointment of Auditors :-

As per rule, M/s. Khan Wahab Shafiq Rahman and Company Chartered Accountants will retire in the 21st Annual General Meeting. It is recommended that M/s. MABS & J Partners Chartered Accountants be appointed as auditor for the year 2017 of the company and to fix their fees by the Annual General Meeting.

 

 

Corporate Governance :-

The Board of Directors of City General Insurance Company Limited firmly believes that practice of good Corporate Governance and transparency ensuring discipline are essential for a sustainable organization.  The company designed the Corporate Governance systems and practices to ensure adequate internal control in operational process, transparency  and accountability. Corporate Governance structure specifies the allocation of rights and responsibilities among the concerned executives and spells out the rules and procedures for making decisions on corporate affairs. The role of Regulatory Authority is very important regarding Corporate Governance practices. Mentionable, Notification No. SEC/CMRRCD/2006-158/134/Admin/44 dated August 07, 2012 has been complied with in order and shown in this report.

 

Our Aims :-

Honorable Shareholders, We assure you that by providing very high quality professional  service to the clients and to increase continuous quality service, the company will always  endeavor to that. Mentionable, by this time honorable clients have increased their confidence to the company.

 

Appreciation :-

I on behalf of  the Board of Directors deeply appreciates the gracious co-operation  to the activities of the company extended by the insured, well-wishers &  patronage at the same time grateful to the ministry of Finance, Insurance Development and Regulatory Authority (IDRA), the Bangladesh Securities and Exchange Commission (BSEC), Registrar of Joint Stock Companies and Firms, Central Rating Committee , Dhaka & Chittagong Stock Exchanges,  Sadharan Bima Corporation, Bangladesh Bank including all scheduled commercial Bank and Bangladesh Insurance Association (BIA) for their sincere support and co-operation.

 

I thank to higher Executives, all offers and staff for their hard work and effort.

At last, honorable shareholders I firmly request for having your support, co- ordination and valuable advice in future.

 

Allah Hafaz

For on behalf of the Board of Directors,

  

(Anwar Hossain)

Chairman