The State Financial Corporations Act

Establishment of State Financial Corporations

Establishment of Joint Financial Corporations

Share capital and share-holders

Special class of shares

Transfer of share capital to Development Bank

Payment of amount

Issue of redeemable preference shares

Reduction of share capital

Restriction on exercising of voting right

Proxy voting

Transfer of share capital to Small Industries Bank

Transfer of shares

Conversion of shares guaranteed by State Government

Additional capital of Financial Corporation and its borrowing powers

Deposits with the Financial Corporation

Managements

Board of directors

Omitted 

Term of office and retirement of directors

Disqualifications for being a director

Removal of director from office

Resignation of office by director and filling up of casual vacancies

Chairman of Board

Remuneration of directors

Managing director

Executive Committee

Meetings of the Board and Committee

Powers of Executive Committee

Advisory Committee

Offices and agencies

Officers and other employees of the Financial Corporation


INCORPORATION OF STATE FINANCIAL CORPORATIONS THEIR CAPITAL AND MANAGEMENT


(1) The State Government may, by notification
in the Official Gazette, establish a Financial Corporation for the State under such name as may be
specified in the notification.

(2) The Financial Corporation shall be a body corporate by the name notified under sub-section (1),
having perpetual succession and a common seal, with power, subject to the provisions of this Act, to
1[acquire, hold and dispose of] property and shall by the said name sue and be sued.

LAWGIST

# 3 Establishment of State Financial Corporations