Section 28: Effect of registration of shares contrary to Act

28. Effect of registration of shares contrary to Act (1) No person shall— (a) either personally or by proxy granted to another person, cast a vote attached to; (b) receive, or be entitled to receive, a dividend payable in respect of; (c) be allotted any share by way of a bonus issue in respect of, a share in an insurer acquired or held in contravention of section 27. (2) The validity of a resolution passed by an insurer shall not be affected solely by reason of a vote being cast contrary to subsection (1). (3) A shareholder of an insurer or the Commission may apply to the Court for an order of restitution to the insurer of any money paid to a person by way of dividend or any share allotted in breach of subsection (1). (4) Any person who fails to comply with subsection (1) shall commit an offence and shall, on conviction, be liable to a fine not exceeding 500,000 rupees and to imprisonment for a term not exceeding 2 years.