Lawgist4ASpecial class of shares
2[4A. Special class of shares.--3[(1) The State Government may, in consultation with the 1[Small Industries Bank], specify from time to time such part of the unissued capital of the Financial Corporation as shall be allocated for the issue of a special class of shares.]
(2) The special class of shares so allocated under sub-section (1), shall be,--
(a) divided into such number of shares of the same face value as the State Government may, in consultation with the 4[Small Industries Bank], determine;
(b) subscribed by the State Government and the 4[Small Industries Bank] and they may do so in such proportion as may be agreed upon by and between them and the Financial Corporation shall make allotment of such shares accordingly.
(3) The funds representing the capital subscribed as aforesaid shall be used only for such purposes, in such manner and for rendering assistance to such class or category of industrial concerns, as the 4[Small Industries Bank] may, in consultation with and after obtaining the advice of the State Government, specify in this behalf from time to time and nothing contained in 5*** section 48 shall apply thereto.
(4) The rate of dividend declared on the special class of shares in respect of any accounting year of a Financial Corporation shall not exceed the rate of dividend in respect of its other shares.
(5) Nothing contained in sub-sections (2) to (5) of section 4, section 5, and 6[sub-sections (1) to (4) of section 6], shall apply to the special class of shares.]
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1. Subs. by Act 39 of 2000, s. 4, for "Development Bank" (w.e.f. 5-9-2000).
2. Ins. by Act 77 of 1972, s. 4 (w.e.f. 30-12-1972).
3. Subs. by Act 52 of 1975, s. 26, for sub-section (1) (w.e.f. 16-2-1976).
4. Subs. by Act 39 of 2000, s. 5, for "Development Bank" (w.e.f. 5-9-2000).
5. Subs. by s. 5, ibid., for "section 47" (w.e.f. 5-9-2000).
6. Subs. by s. 5, ibid., for "sub-section (1) of section 6" (w.e.f. 5-9-2000).
- 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
- 4G Proxy voting
- 4H Transfer of share capital to Small Industries Bank
- 5 Transfer of shares
- 6 Conversion of shares guaranteed by State Government
- 7 Additional capital of Financial Corporation and its borrowing powers
- 8 Deposits with the Financial Corporation
- 9 Managements
- 10 Board of directors
- 10A Omitted
- 11 Term of office 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
- 19 Meetings of the Board and Committee
- 20 Powers of Executive Committee
- 21 Advisory Committee
- 22 Offices and agencies
- 23 Officers and other employees of the Financial Corporation
