The STATE FINANCIAL CORPORATIONS ACT, 1951

PRELIMINARY

Section 1 — Short title, extent and commencement.

(1) This Act may be called the State Financial Corporations Act, 1951.

(2) It extends to the whole of India [Omitted] .

(3) It shall come into force in any State on such date as the Central Government may, by notification in the Official Gazette, appoint.

Browse all 79 sections
  1. 1.Short title, extent and commencement.
  2. 2.Definitions.
  3. 3.Establishment of State Financial Corporations.
  4. 3A.Establishment of Joint Financial Corporations.
  5. 4.Share capital and share-holders.
  6. 4A.Special class of shares.
  7. 4B.Transfer of share capital to Development Bank.
  8. 4C.Payment of amount.
  9. 4D.Issue of redeemable preference shares.
  10. 4E.Reduction of share capital.
  11. 4F.Restriction on exercising of voting right.
  12. 4G.Proxy voting.
  13. 4H.Transfer of share capital to Small Industries Bank.
  14. 5.Transfer of shares.
  15. 6.Conversion of shares guaranteed by State Government.
  16. 7.Additional capital of Financial Corporation and its borrowing powers.
  17. 8.Deposits with the Financial Corporation.
  18. 9.Managements.
  19. 10.Board of directors.
  20. 10A.[Omitted.]
  21. 11.Term of office and retirement of directors.
  22. 12.Disqualifications for being a director.
  23. 13.Removal of director from office.
  24. 14.Resignation of office by director and filling up of casual vacancies.
  25. 15.Chairman of Board.
  26. 16.Remuneration of directors.
  27. 17.Managing director.
  28. 18.Executive Committee.
  29. 19.Meetings of the Board and Committee.
  30. 20.Powers of Executive Committee.
  31. 21.Advisory Committee.
  32. 22.Offices and agencies.
  33. 23.Officers and other employees of the Financial Corporation.
  34. 24.General duty of the Board.
  35. 25.Business which Financial Corporation may transact.
  36. 25A.Power to acquire rights.
  37. 25B.Gifts, grants, etc.
  38. 26.Limit of accommodation.
  39. 27.Power to impose conditions for accommodation.
  40. 28.Prohibited business.
  41. 29.Rights of Financial Corporation in case of default.
  42. 30.Power to call for repayment before agreed period.
  43. 31.Special provisions for enforcement of claims by Financial Corporation.
  44. 32.Procedure of district judge in respect of applications under section 31.
  45. 32A.Power of Financial Corporation to appoint directors or administrators of an industrial concern when management is taken over.
  46. 32B.Effect of notified order under section 32A.
  47. 32C.Powers and duties of directors and administrators.
  48. 32D.No right to compensation for termination of contract of managing agent, managing director, etc.
  49. 32E.Application of Act 1 of 1956.
  50. 32F.Restriction on tiling of suite for dissolution, etc., of an industrial concern not being a company when its management is taken over.
  51. 32G.Recovery of amounts due to the Financial Corporation as an arrear of land revenue.
  52. 33.Funds of the Financial Corporation.
  53. 34.Investment of funds.
  54. 35.Disposal of profits.
  55. 35A.Special reserve fund.
  56. 36.General meetings.
  57. 37.Audit.
  58. 37A.Inspection.
  59. 38.Returns.
  60. 39.Power to give instructions to Financial Corporation on questions of policy.
  61. 40.Declaration of fidelity and secrecy.
  62. 41.Indemnity of directors.
  63. 41A.Protection of action taken by persons appointed under section 27 or section 32A.
  64. 41B.Nomination in respect of deposits, bonds, etc.
  65. 42.Offences.
  66. 43.Provisions relating to income-tax and super-tax.
  67. 43A.Delegation of powers.
  68. 43B.Reports to the Board.
  69. 44.Act 18 of 1891 to apply to the books of the Financial Corporation.
  70. 45.Liquidation of Financial Corporation.
  71. 46.Power to apply Act to certain financial institutions in existence at commencement of Act.
  72. 46A.Extension of jurisdiction of the Financial Corporation to other States by agreement.
  73. 46B.Effect of Act on other laws.
  74. 47.[Omitted.]
  75. 48.Power of Board to make regulations.
  76. 48A.Laying of rules and regulations before State Legislature.
  77. 48B.Power to make rules.
  78. 49.Power to remove difficulty.
  79. SCH-THE SCHEDULE.THE SCHEDULE