Section 34A of IA : Section 34A: Amendment Of Provisions Relating To Appointments Of Managing Directors, Etc, To Be Subject To Previous Approval Of The Controller

Explanation using Example

Imagine an insurance company, "SecureLife Insurance", is planning to restructure its leadership team. They want to re-appoint Mr. John Smith as their Managing Director for another term. According to Section 34A of the Insurance Act, 1938, SecureLife Insurance must first seek approval from the insurance regulatory authority before any changes to Mr. Smith's appointment or his remuneration package can take effect.

They draft a new agreement outlining the terms of Mr. Smith's re-appointment and an enhanced benefits package upon his retirement. Before implementing this, they submit the proposed changes to the regulatory authority. The authority reviews the amendments to ensure they comply with industry standards and regulations. Only after receiving approval from the authority can SecureLife Insurance legally effectuate Mr. Smith's re-appointment and the associated remuneration amendments.