Section 6 in The Life Insurance Corporation Act, 1956
6. Functions of the Corporation. -
(1)Subject to the rules, if any, made by the Central Government in this behalf, it shall be the general duty of the Corporation to carry on life insurance business, whether in or outside India, and the Corporation shall so exercise its powers under this Act as to secure that life insurance business is developed to the best advantage of the community.(2)Without prejudice to the generality of the provisions contained in sub-section (1) but subject to the other provisions contained in this Act, the Corporation shall have power-(a)to carry on capital redemption business, annuity certain business or re-insurance business insofar as such re-insurance business appertains to life insurance business;(b)subject to the rules, if any, made by the Central Government in this behalf, to invest the funds of the Corporation in such manner as the Corporation may think fit and to take all such steps, as may be necessary or expedient for the protection or realisation of any investment, including the taking over of and administering any property offered as security for the investment until a suitable opportunity arises for its disposal;(c)to acquire, hold and dispose of any property for the purpose of its business;(d)to transfer the whole or any part of the life insurance business carried on outside India to any other person or persons, if in the interests of the Corporation it is expedient so to do;(e)to advance or lend money upon the security of any movable or immovable property or otherwise;(f)to borrow or raise any money in such manner and upon such security as the Corporation may think fit;(g)to carry on either by itself or through any subsidiary any other business in any case where such other business was being carried on by a subsidiary of an insurer whose controlled business has been transferred to and vested in the Corporation under this Act;(h)to carry on any other business which may seem to the Corporation to be capable of being conveniently carried on in connection with its business and calculated directly or indirectly to render profitable the business of the Corporation;(i)to do all such things as may be incidental or conducive to the proper exercise of any of the powers of the Corporation.(3)In the discharge of any of its functions the Corporation shall act so far as may be on business principles.[6-A. Power to impose conditions, etc.(1)In entering into any arrangement, under section 6, with any concern, the Corporation may impose such conditions as it may think necessary or expedient for protecting the interest of the Corporation and for securing that the accommodation granted by it is put to the best use by the concern.(2)Where any arrangement entered into by the Corporation under section 6 with any concern provides for the appointment by the Corporation of one or more directors of such concern, such provision and any appointment of directors made in pursuance thereof shall be valid and effective notwithstanding anything to the contrary contained in the Companies Act, 1956 (1 of 1956), or in any other law for the time being in force or in the memorandum, articles of association or any other instrument relating to the concern, and any provision regarding share, qualification, age limit, number of directorships, removal from office of directors and such like conditions contained in any such law or instrument aforesaid, shall not apply to any director appointed by the Corporation in pursuance of the arrangement as aforesaid.(3)Any director appointed as aforesaid shall-(a)hold office during the pleasure of the Corporation and may be removed or substituted by any person by order in writing by the Corporation;(b)not incur any obligation or liability by reason only of his being a director or for anything done or omitted to be done in good faith in the discharge of his duties as a director or anything in relation thereto;(c)not be liable to retirement by rotation and shall not be taken into account for computing the number of directors liable to such retirement.]
