7Shares to be issued by the National Textile Corporation for the value of the assets transferred to it by the Central Government
(1) An amount equal to the value of the assets of a sick textile undertaking transferred to, and vested in, the National Textile Corporation under sub-section (2) of section 3, shall be deemed to be the contribution made by the Central Government to the equity capital of the National Textile Corporation; and for the contribution so made, the National Textile Corporation shall issue (if necessary after amending its memorandum and articles of association) to the Central Government paid-up shares, in its equity capital, having a face value equal to the amount specified against the sick textile undertaking in the corresponding entry in column (4) of the First Schedule.
(2) Where any liability assumed by the Central Government under this Act is taken over by the National Textile Corporation under section 27, the Central Government shall surrender to that Corporation the shares issued to it under sub-section (1) having the face value equal to the amount to the extent to which the liability has been so taken over by the National Textile Corporation and thereupon the share capital of the National Textile Corporation shall, to the extent of the face value of the shares so surrendered, stand reduced.
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- 3 Acquisition of rights of owners in respect of sick textile undertakings
- 4 General effect of vesting
- 5 Owner to be liable for certain prior liabilities
- 6 National Textile Corporation to form subsidiary corporations
- 7 Shares to be issued by the National Textile Corporation for the value of the assets transferred to it by the Central Government