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The State Financial Corporations Act, 1951

Central

An Act to provide for the establishment of State Financial Corporations.

Act number
63 of 1951
Ministry
Ministry of Finance
Department
Department of Financial Services
Enacted
31 Oct 1951

Source: IndiaCode Portal, Legislative Department, Ministry of Law and Justice, Government of India. Open on India Code Check against the official text before relying on it.

78 sections

  1. Section 1Short title, extent and commencement.
  2. Section 2Definitions.
  3. Section 3Establishment of State Financial Corporations.
  4. Section 3AEstablishment of Joint Financial Corporations.
  5. Section 4Share capital and share-holders.
  6. Section 4ASpecial class of shares.
  7. Section 4BTransfer of share capital to Development Bank.
  8. Section 4CPayment of amount.
  9. Section 4DIssue of redeemable preference shares.
  10. Section 4EReduction of share capital.
  11. Section 4FRestriction on exercising of voting right.
  12. Section 4GProxy voting.
  13. Section 4HTransfer of share capital to Small Industries Bank.
  14. Section 5Transfer of shares.
  15. Section 6Conversion of shares guaranteed by State Government.
  16. Section 7Additional capital of Financial Corporation and its borrowing powers.
  17. Section 8Deposits with the Financial Corporation.
  18. Section 9Managements.
  19. Section 10Board of directors.
  20. Section 10AOmitted .
  21. Section 11Term of office and retirement of directors.
  22. Section 12Disqualifications for being a director.
  23. Section 13Removal of director from office.
  24. Section 14Resignation of office by director and filling up of casual vacancies.
  25. Section 15Chairman of Board.
  26. Section 16Remuneration of directors.
  27. Section 17Managing director.
  28. Section 18Executive Committee.
  29. Section 19Meetings of the Board and Committee.
  30. Section 20Powers of Executive Committee.
  31. Section 21Advisory Committee.
  32. Section 22Offices and agencies.
  33. Section 23Officers and other employees of the Financial Corporation.
  34. Section 24General duty of the Board.
  35. Section 25Business which Financial Corporation may transact.
  36. Section 25APower to acquire rights.
  37. Section 25BGifts, grants, etc.
  38. Section 26Limit of accommodation.
  39. Section 27Power to impose conditions for accommodation.
  40. Section 28Prohibited business.
  41. Section 29Rights of Financial Corporation in case of default.
  42. Section 30Power to call for repayment before agreed period.
  43. Section 31Special provisions for enforcement of claims by Financial Corporation.
  44. Section 32Procedure of district judge in respect of applications under section 31.
  45. Section 32APower of Financial Corporation to appoint directors or administrators of an industrial concern when management is taken over.
  46. Section 32BEffect of notified order under section 32A.
  47. Section 32CPowers and duties of directors and administrators.
  48. Section 32DNo right to compensation for termination of contract of managing agent, managing director, etc.
  49. Section 32EApplication of Act 1 of 1956.
  50. Section 32FRestriction on tiling of suite for dissolution, etc., of an industrial concern not being a company when its management is taken over.
  51. Section 32GRecovery of amounts due to the Financial Corporation as an arrear of land revenue.
  52. Section 33Funds of the Financial Corporation.
  53. Section 34Investment of funds.
  54. Section 35Disposal of profits.
  55. Section 35ASpecial reserve fund.
  56. Section 36General meetings.
  57. Section 37Audit.
  58. Section 37AInspection.
  59. Section 38Returns.
  60. Section 39Power to give instructions to Financial Corporation on questions of policy.
  61. Section 40Declaration of fidelity and secrecy.
  62. Section 41Indemnity of directors.
  63. Section 41AProtection of action taken by persons appointed under section 27 or section 32A.
  64. Section 41BNomination in respect of deposits, bonds, etc.
  65. Section 42Offences.
  66. Section 43Provisions relating to income-tax and super-tax.
  67. Section 43ADelegation of powers.
  68. Section 43BReports to the Board.
  69. Section 44Act 18 of 1891 to apply to the books of the Financial Corporation.
  70. Section 45Liquidation of Financial Corporation.
  71. Section 46Power to apply Act to certain financial institutions in existence at commencement of Act.
  72. Section 46AExtension of jurisdiction of the Financial Corporation to other States by agreement.
  73. Section 46BEffect of Act on other laws.
  74. Section 47Omitted .
  75. Section 48Power of Board to make regulations.
  76. Section 48ALaying of rules and regulations before State Legislature.
  77. Section 48BPower to make rules.
  78. Section 49Power to remove difficulty.