State Financial Corporations Act, 1951

[Act No. 63 of Year 1951, dated 31st. October, 1951]

Contents
Sections	Particulars
Chapter I	Preliminary
1	Short title, extent and commencement
2	Definitions
Chapter II	Incorporation Of State Financial Corporations, Their Capital And Management
3	Establishment of State Financial Corporations
3A	Establishment of Joint Financial Corporations
4	Share capital and shareholders
4A	Special class of shares
4B	Transfer of share capital to Development Bank
4C	Payment of amount
5	Restrictions on transfer of shares
6	Shares to be guaranteed by the State Government and to be trust or approved securities
7	Additional capital of the Financial Corporation and its borrowing powers
7A	Power to transfer rights
8	Deposits with the Financial Corporation
9	Management of Financial Corporations
10	Board of Directors
10A	Vacation of office by an elected Director
Chapter II	Incorporation of State Financial Corporations, Their capital and Management
11	Term of office and retirement of Directors
12	Disqualification 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 the 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
Chapter III	Powers And Duties Of The Board
24	General duty of the Board
25	Business which Financial Corporation may transact
25A	Power to acquire rights
26	Limit of accommodation
27	Power to impose conditions for accommodation
28	Prohibited business
29	Rights of Financial Corporation in case of default
30	Power to call for repayment before agreed period
31	Special provisions for enforcement of claims by Financial Corporation
32	Procedure of District Judge in respect of applications under section 31
32A	Power of Financial Corporation to appoint Directors or administrators of an industrial concern when management is taken over
32B	Effect of notified order under section 32A
32C	Powers and duties of Directors and administrators
32D	No right to compensation for termination of contract of Managing Agent, Managing Director, etc.
32E	Application of Act 1 of 1956
32F	Restriction on filing of suits for dissolution, etc. of an industrial concern not being a company when its management is taken over
32G	Recovery of amounts due to the Financial Corporation as an arrear of land revenue
Chapter IV	Investment Of Funds, Accounts And Audit
33	Funds of the Financial Corporation
34	Investment of funds
35	Disposal of profits
35A	Special reserve fund
36	General meetings
37	Audit
37A	Inspection
38	Returns
Chapter V	Miscellaneous
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
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	Power of State Government to make rules
48	Power of Board to make regulations
48A	Laying of rules and regulations before State Legislature
49	Power to remove difficulty
	Schedule Declaration Of Fidelity And Secrecy
	Foot Notes

An Act to provide for the establishment of State Financial Corporations

Be it enacted by Parliament as follows:-