The State Financial Corporations Act,1951 (Bare Act)/ Universal Law Publishing

THE STATE FINANCIAL CORPORATIONS ACT, 1951
Introduction
Sections
CHAPTER!
PRELIMINARY
1. Short title, extent and commencement
2. Definitions
I ^'1
CHAPTER II
INCORPORATION OF STATE FINANCIAL CORPORATIONS,
THEIRCAPITALANDMANAGEMENT
3. Establishment of State Financial Corporations
3A. Establishment of Joint Financial Corporations
4. Share capital and share-holders
4A. Special class of shares
4B. Transfer of share capital to Development Bank
4C. Payment of amount
4D. Issue of redeemable preference shares
4E. Reduction of share capital
4F. Restriction on exercising of voting right
40. Proxy voting
4H. Transfer of share capital to Small Industries Bank
5. Transfer of shares
6. Conversion of shares guaranteed by State Govemment 7. Additional capital of the Financial Corporation and its borrowing powers
8. Deposits with the Financial Corporation
9. Managements
10. Board of directors
11. Term ofolTice and retirement of directors
12. Disqualifications for being a director
13. Removal of director from office
14. Resignation of office by director and filling up of casual vacancies
15. Chairman of Board
16. Remuneration of directors
17. Managing director
18. Executive Committee

Sections
19. Meetings of the Board and Committee
20. Powers of Exedbtive Committee
21. Advisory Committee
22. Offices and agencies
23. Officers and other employees of the Financial Corporation

CHAPTER III
POWERS AND DUTIES OF THE BOARD
24. General duty of the Board
25. Business which Fnancial Corporation may transact
25A. Power to acquire rights
25B. Gifts, grants, etc.
26. Limit of accommodation
27. Power to impose conditions for accommodation
28. Prohibited business
29. Rights of Financial Corporation in case of default
30. Power to coil for repayment before agreed period
31. Special provisions for enforcement of claims by Financial Corporation . >
32. Procedure of district judge in respect of applications under section 31 .
32A. Power of Financial Corporation to appoint directors or administrators of an industrial concern when management is taken over .
328. Effect of notified order under section 32A
32C. Powers and duties of directors and administrators
32D. No right to compensation for termination of contract of managing agent, managing director, etc.
32E. Application of Act 1 of 1956
32F. Restriction on filing of suits for dissolution, etc.. of an industrial concern not being a company when its management is taken over
32G. Recovery of amounts due to the Financial Corporation as an arrear of
land revenue
CHAPTER IV
INVESTMENT OF FUNDS, ACCOUNTS AND AUDIT
33. Funds of the Financial Corporation
34. Investment of funds
35. Disposal of profits
35A. Special reserve fund
36. General meetings
37. Audit 36 37A. Inspection , . . . 37 38. Returns 38
CHAPTER V
MISCELLANEOUS 39. Power to give instructions to Financial Corporation on questions of policy 38 40. Declaration of fidelity and secrecy 39 41. Indemnity of directors 40 41A. Protection of action taken by persons appointed under section 27 or section 32A 40 41B. Nomination in respect of deposits, bonds, etc. 40
42. Offences 40
43. Provisions relating to income-tax and super-tax 40 43A. Delegation of powers 41
43 B. Reports to the Board 41 44. Act 18 of 1891 to apply to the books of the Financial Corporation 41 45. Liquidation of Financial Corporation 41 46. Power to apply Act to certain financial institutions in existence at
commencement of Act 41 46A. Extension ofjurisdiction of the Financial Corporation to other States by agreement 42
46B. Effect of Act on other laws 42
47. [Repealed] 42
48. Power of Board to make regulations . . 42 48A. Laying of rules and regulations before State Legislature 44
48B. Power to make rules 44
49. Power to remove difficulty 44
THE SCHEDULE.—Declaration of fidelity and secrecy 44
THE STATE FINANCIAL CORPORATIONS (APPEAL TO THE
CENTRAL GOVERNMENT) RULES, 2003
1. Short title and commencement . . . 45
2. Deflnltions . . . 45
3. Procedure for filing appeal . . . 45 4. Time within which appeal is to be preferred . . . 45
5. Payment of fees . • . . 46
6. Contents of appeal . . . 46
7. Furnishing of information or documents . . . 46 8. Date and place of hearing of appeal to be communicated . . ^ 46 9. Hearing of appeal . . ^ 46 FORM—Appeal under sub-section (5) of section 5 of the State Financial Corporations Act, 1951