Pakistan Insurance Corporation (Re-Organization) Ordinance, 2000

This 2000 Ordinance converts the state-owned Pakistan Insurance Corporation into a public limited company called Pakistan Reinsurance Company Limited. It was issued during the period when Pakistan's National Assembly and Senate were suspended following the October 1999 emergency proclamation, under presidential ordinance-making power.

Section 3 is the operative provision: the Federal Government issues an order specifying a date on which the Corporation's property, rights and liabilities transfer to the new Company, on terms the government sets. The order must also name which employees move to the Company, and cannot make their terms of service worse than before. The Company continues the Corporation's business as it was being run, the Corporation is dissolved from that date, and existing shareholders get shares in the new Company carrying the same proportional voting rights they had in the Corporation — though a shareholder can instead choose, within thirty days, to be cashed out at the principal value of their shares, with those shares then reissued in the President's name. The Corporation's shares stop being listed on any stock exchange 120 days after the transfer, replaced immediately by the Company's shares on the same exchange. No stamp duty applies to this transfer, and all of the Corporation's existing contracts and pending court cases carry over to the Company unaffected.

Section 4 protects transferred employees: they get no automatic compensation just for being transferred, but the Federal Government guarantees their existing terms of service and pension benefits, and the Company cannot worsen these without the employees' consent and appropriate compensation.

Section 5 exempts the new Company from registration fees given it is simply continuing the Corporation's business, and section 7 repeals the Pakistan Insurance Corporation Act, 1952 once the Company is formally incorporated and registered.