The Road Transport Corporations Act, 1950
23. Capital to the Corporation.
- The Central Government and the State Government, may provide to a corporation established by the State Government, in such proportion as may be agreed to by both the Governments, any capital that may be required by the Corporation for the purpose of carrying on the undertaking or for purposes connected therewith on such terms and conditions, not inconsistent with the provisions of this Act, as the State Government may, with the previous approval of the Central Government, determine.
- 1[The Corporation may, whether or not any capital is provided to it under sub-section(1), raise by the issue of shares such capital (hereafter in this section referred to as the "authorised share capital") as may be authorised in this behalf by the State Government:
Provided that where any capital is provided to the Corporation under sub-section (1), no capital may be raised under this sub-section without the previous approval of the Central Government.
2A Any capital raised under sub-section (2) with the previous. approval of the Central Government may be,-
- in addition to the capital provided to the Corporation under sub-section (1);
- subscribed to by the Central Government or the State Government, as the case may be, by converting the whole or any part of the capital provided [whether before or after the commencement of the Road Transport Corporations (Amendment) Act, 1982] to the Corporation by that Government under sub - section (1).]
- The 1[authorised share capital] of the Corporation shall be divided into such number of shares as the State Government may determine; and, the number of shares which shall be subscribed by the State Government, the Central Government and other parties (including persons whose undertakings have been acquired by the Corporation) shall also be determined by the State Government, in consultation with the Central Government.
- The allotment of shares to other parties mentioned in sub - section (3) shall be made by the Corporation in such manner as may be prescribed.
- The shares of the Corporation shall not be transferable except in accordance with the rules made under this Act.
- The Corporation may at any time, with the previous approval of the State Government, redeem the shares issued to the other parties under sub-section (4) in such manner as may be prescribed.