THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1970

ACT NO. 5 OF 1970 · Enacted [31st March, 1970.] · 29 sections

PRELIMINAR

Section 1.Short title and commencement.

Section 2.Definitions.

TRANSFER OF THE UNDERTAKINGSOF EXISTING BANKS AND SHARE CAPITALS OF THE CORRESPONDING NEW BANKS

Section 3.Establishment of corresponding new banks and business thereof.

Section 3A.Trust not to be entered on the register.

Section 3B.Register of beneficial owners.

Section 4.Undertaking of existing banks to vest in corresponding new banks.

Section 5.General effect of vesting.

PAYMENT OF COMPENSATION

Section 6.Payment of compensation.

MANAGEMENT OF CORRESPONDING NEW BANKS

Section 7.Head office and management.

Section 8.Corresponding new banks to be guided by the directions of the Central Government.

Section 9.Power of Central Government to make scheme.

Section 9A.Power of Reserve Bank to appoint additional director.

MISCELLANEOUS

Section 10.Closure of accounts and disposal of profits.

Section 10A.Annual general meeting.

Section 10B.Transfer of unpaid or unclaimed dividend to Unpaid Dividend Account.

Section 11.Corresponding new bank deemed to be an Indian company.

Section 12.Removal of Chairman from office.

Section 12A.Bonus.

Section 13.Obligations as to fidelity and secrecy.

Section 14.Custodian to be public servant.

Section 15.Certain defects not to invalidate acts or proceedings.

Section 16.Indemnity.

Section 16A.Arrangement with corresponding new bank on appointment of directors to prevail.

Section 17.References to existing banks on and from the commencement of this Act.

Section 18.Dissolution.

Section 18A.Supersession of Board in certain cases.

Section 19.Power to make regulations.

Section 20.Amendment of certain enactments.

Section 21.Repeal and savings.