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State Financial Corporations Act, 1951

4A. Special class of shares

(1) The State Government may, in consultation with the Development Bank, specify from time to time such part of the Unicode 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 Development Bank determine;

(b) subscribed by the State Government and the Development 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 Development 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 section 47 or 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-section (2) to (5) of section 4, section 5, and sub-section (1) of section 6, shall apply to the special class of shares.

State Financial Corporation Act, 1951 Back

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