State Financial Corporations Act, 1951

35A. Special reserve fund

(1) The Financial Corporation may establish a special reserve fund, to which shall be transferred such portion of the dividends accruing to the State Government, the Reserve Bank and the Development Bank on the shares of the Financial Corporation as may be fixed by agreement between the State Government, the Reserve Bank and the Development Bank;

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PROVIDED FURTHER that after the specified date this sub section shall have effect as if for the words "the State Government, the Reserve Bank and the Development Bank", the words "the State Government and the Development Bank" have been substituted except as regards all dividends accruing in respect of any completed accounting period prior to the specified date.

(2) No shareholder of the Financial Corporation, other than the State Government, the Reserve Bank and the Development Bank, shall have any claim to the special reserve fund.

(3) The amount standing to the credit of the special reserve fund may be utilized by the Financial Corporation for only such purposes as are approved by the State Government, the Reserve Bank and the Development Bank.