Section 19Section 19

s. 19

19 (1) Every Corporation may appoint such officers and other employees as it considers necessary for the efficient performance of its functions on such terms and conditions as it may determine. (2) A Corporation may employ such officers and other employees of an insurer whose undertaking has been transferred to a subsidiary Corporation under clause (1) of Article 17 as the controlling Corporation may specify, and the officers and other employees so employed shall hold their office or service in the Corporation which employs them on such terms and conditions as that Corporation may determine: Provided that an officer or other employee may, within such time, as may be specified by the Corporation which employs him, exercise his option not to continue in the service of that Corporation: Provided further that the controlling Corporation may, within one year from the Commencement of this Order, transfer an Officer or other employee from one Corporation to another. (3) If any question arises out the transfer of an officer or other employee of an insurer under clause (2), the question shall be referred to the Government whose decision shall be final. (4) The transfer of service of any officer or other employee from an insurer to the controlling Corporation or to a subsidiary Corporation shall not entitle any such officer or other employee to any compensation and no such claim shall be entertained by any court, tribunal or other authority. (5) Notwithstanding anything contained in any rules, regulations, contract or agreement relating to the terms and conditions of service made or entered into by an insurer or in the Articles of Association of any such insurer, no person shall be entitled to any compensation against the insurer or against any Corporation for the loss of his office or service or for the premature termination of any contract or agreement of management entered into by him with the insurer. (6) Notwithstanding anything contained in this Order, the controlling Corporation shall determine the pay scales of the different classes of officers and other employees of a subsidiary Corporation. (7) Where all the officers and other employees of an insurer have been employed by one or more Corporations under clause (2), the money and other assets belonging to any provident, superannuation, or any other fund established by the insurer for the benefit of such officers and other employees and in respect of which a trust has been constituted by him shall be transferred to, and vest in, such Corporation or Corporations, free from any such trust, in such manner as the Government may, by order, specify, and the trustees of such trust shall, as from the date of such transfer, stand discharged from the trust, except as respects things done or omitted to be done before such date. (8) Where all the officers and other employees of an insurer have not been employed by the Corporations under clause (2), the moneys and other assets belonging to any such fund as is referred to in clause (7) shall be apportioned between the trustees of the fund and the Corporations which have employed some of the officers and other employees of the insurer in such manner as the Government may, by order, specify.