Lawgist39Power to give instructions to Financial Corporation on questions of policy
(1) In the discharge of its functions, the Board shall be guided by such instructions on questions of policy as may be given to it by the State Government 1[in consultation with 2[and after obtaining the advice of,] the 3[Small Industries Bank]].
(2) If any dispute arises between the State Government and the Board as to whether a question is or is not a question of policy, the decision of the State Government shall be final.
4[(2A) Nothing contained in sub-section (1) and sub-section (2) shall apply in a case where a State Government holds less than fifty-one per cent. of the equity shares in the Financial Corporation.
(2B) Notwithstanding the equity share holding of a Financial Corporation by a State Government, the State Government may advise the Financial Corporations on the matters of policy.]
(3) If the Board fails to carry out the instructions on the question of policy laid down by the State Government 5[under sub-section (1) of this section or the instructions given to the Board under sub-section (4) of section 37A], the State Government shall have the power to supersede the Board and appoint a new Board in its place to function until a properly constituted Board is set up, and the decision of the State Government as to the grounds for superseding the Board shall not be questioned in any court.
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1. Ins. by Act 56 of 1956, s. 23 (w.e.f.1-10-1956).
2. Inserted by Act 77 of 1972, s. 26 (w.e.f. 30-12-1972).
3. Subs. by Act 39 of 2000, s. 28, for "Development Bank" (w.e.f. 5-9-2000).
4. Ins. by s. 28, ibid. (w.e.f. 5-9-2000).
5. Subs. by Act 56 of 1956, s. 23, for certain words (w.e.f. 1-10-1956).
- 39 Power to give instructions to Financial Corporation on questions of policy
- 40 Declaration of fidelity and secrecy
- 41 Indemnity of directors
- 41A Protection of action taken by persons appointed under section 27 or section 32A
- 41B Nomination in respect of deposits, bonds, etc
- 42 Offences
- 43 Provisions relating to income-tax and super-tax
- 43A Delegation of powers
- 43B Reports to the Board
- 44 Act 18 of 1891 to apply to the books of the Financial Corporation
- 45 Liquidation of Financial Corporation
- 46 Power to apply Act to certain financial institutions in existence at commencement of Act
- 46A Extension of jurisdiction of the Financial Corporation to other States by agreement
- 46B Effect of Act on other laws
- 47 Omitted
- 48 Power of Board to make regulations
- 48A Laying of rules and regulations before State Legislature
- 48B Power to make rules
- 49 Power to remove difficulty
