( 1 ) Sub ject to the rules, if any, made by the Central Government in this behalf and to its me morandum and articles of association, it sh all be the duty of every acquiring company to carry on general insurance business.
( 2 ) Each acquiring company sh all so function under this Act as to secure that general insurance business is developed to the best advantage of the community.
( 3 ) In the discharge of any of its functions, each acquiring company sh all act so far as may be on business principles and where any directions have been issued by the1[ Central Government or the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999)] sh all be guided by such directions.
( 4 ) For the removal of doubts it is hereby declared that the Corp oration and any acquiring company may, sub ject to the rules, if any, made by the Central Government in this behalf, enter into such contracts of reinsurance or reinsurance treaties as it may think fit for the protection of its interests.
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1.Substituted by Act 40 of 2002, section 5, for "Corporation".