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THE STATE FINANCIAL CORPORATIONS ACT, 1951

ACT NO. 63 OF 1951 · Enacted [31st October, 1951.] · 78 sections

PRELIMINARY

Section 1.Short title, extent and commencement.
Section 2.Definitions.

INCORPORATION OF STATE FINANCIAL CORPORATIONS THEIR CAPITAL AND MANAGEMENT

Section 3.Establishment of State Financial Corporations.
Section 3A.Establishment of Joint Financial Corporations.
Section 4.Share capital and share-holders.
Section 4A.Special class of shares.
Section 4B.Transfer of share capital to Development Bank.
Section 4C.Payment of amount.
Section 4D.Issue of redeemable preference shares.
Section 4E.Reduction of share capital.
Section 4F.Restriction on exercising of voting right.
Section 4G.Proxy voting.
Section 4H.Transfer of share capital to Small Industries Bank.
Section 5.Transfer of shares.
Section 6.Conversion of shares guaranteed by State Government.
Section 7.Additional capital of Financial Corporation and its borrowing powers.
Section 8.Deposits with the Financial Corporation.
Section 9.Managements.
Section 10.Board of directors.
Section 10A.[Omitted.]
Section 11.Term of office and retirement of directors.
Section 12.Disqualifications for being a director.
Section 13.Removal of director from office.
Section 14.Resignation of office by director and filling up of casual vacancies.
Section 15.Chairman of Board.
Section 16.Remuneration of directors.
Section 17.Managing director.
Section 18.Executive Committee.
Section 19.Meetings of the Board and Committee.
Section 20.Powers of Executive Committee.
Section 21.Advisory Committee.
Section 22.Offices and agencies.
Section 23.Officers and other employees of the Financial Corporation.

POWERS AND DUTIES OF THE BOARD

Section 24.General duty of the Board.
Section 25.Business which Financial Corporation may transact.
Section 25A.Power to acquire rights.
Section 25B.Gifts, grants, etc.
Section 26.Limit of accommodation.
Section 27.Power to impose conditions for accommodation.
Section 28.Prohibited business.
Section 29.Rights of Financial Corporation in case of default.
Section 30.Power to call for repayment before agreed period.
Section 31.Special provisions for enforcement of claims by Financial Corporation.
Section 32.Procedure of district judge in respect of applications under section 31.
Section 32A.Power of Financial Corporation to appoint directors or administrators of an industrial concern when management is taken over.
Section 32B.Effect of notified order under section 32A.
Section 32C.Powers and duties of directors and administrators.
Section 32D.No right to compensation for termination of contract of managing agent, managing director, etc.
Section 32E.Application of Act 1 of 1956.
Section 32F.Restriction on tiling of suite for dissolution, etc., of an industrial concern not being a company when its management is taken over.
Section 32G.Recovery of amounts due to the Financial Corporation as an arrear of land revenue.

INVESTMENT OF FUNDS, ACCONTS AND AUDIT

Section 33.Funds of the Financial Corporation.
Section 34.Investment of funds.
Section 35.Disposal of profits.
Section 35A.Special reserve fund.
Section 36.General meetings.
Section 37.Audit.
Section 37A.Inspection.
Section 38.Returns.

MISCELLANEOUS

Section 39.Power to give instructions to Financial Corporation on questions of policy.
Section 40.Declaration of fidelity and secrecy.
Section 41.Indemnity of directors.
Section 41A.Protection of action taken by persons appointed under section 27 or section 32A.
Section 41B.Nomination in respect of deposits, bonds, etc.
Section 42.Offences.
Section 43.Provisions relating to income-tax and super-tax.
Section 43A.Delegation of powers.
Section 43B.Reports to the Board.
Section 44.Act 18 of 1891 to apply to the books of the Financial Corporation.
Section 45.Liquidation of Financial Corporation.
Section 46.Power to apply Act to certain financial institutions in existence at commencement of Act.
Section 46A.Extension of jurisdiction of the Financial Corporation to other States by agreement.
Section 46B.Effect of Act on other laws.
Section 47.[Omitted.]
Section 48.Power of Board to make regulations.
Section 48A.Laying of rules and regulations before State Legislature.
Section 48B.Power to make rules.
Section 49.Power to remove difficulty.