Report No. 251
17. Smith, Stanistreet and Company Limited (Acquisition and Transfer of Undertakings) Act, Act 41 of 1977
Category: Nationalisation Recommendation: Consider for Repeal The Act transferred all assets, rights, powers and properties of the company to the Central Government, and declared those assets to be free of all encumbrances or obligations. Owing to severe financial losses, the Central Government closed the Company in 2001.
This Act provided for the nationalisation of Smith, Stanistreet and Company and for matters connected therewith, such as amount to be paid on transfer of the undertaking of the Company, transfer of service of existing employees, etc. The purpose of this Act has been served insofar the nationalisation of the concerned entity was concerned.
The Act does not contain provisions of the management of the nationalised entity. Hence, this Act does not serve any continuing purpose with respect to the nationalised entity. As a matter of abundant caution, a study of all the nationalisation Acts should be done before with a view to consider repeal of these Acts. If necessary, a suitable savings clause should be inserted in the repealing Act.