The Banking companies (Acquisition & Transfer of Undertakings) Amendment Ordinance, 1995

" • U:GISTElt.ED NO. DL-131M/11 . • . . · I 11, ..... ~ d1 l<t1 ~ ~51q,1 • ~he Cba:ette of &}ud«.l wo 7) No. 7J amt~ EXTRAORDINARY \ 1'lff II~ 1 PART II-section 1 snf~1t W ~lfffl PUBLISHED BY AUTHORITY ~ fi!l~, .~f,t~r~, ~rf~) 21 1995/1U~ 1 1916 NEW DELHI ' ' . • SATURDAY, JANUARY 21, 19~iMAG1tA 1, 1916 '(« 1"'l ij "N1''55 ~ ~ ~ ~ e-:.. c..mr • ~ ~ . ....::.. • ". Q_ l\lltftt I'll ,~ ~ ~'II~ tt ~ ;fl tt'II l Separate pagmg b given to this Part in rd . o er that It may be filed as a separate compiladoa. , .. . -- - - • ··-··-···-- MlNISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS • (Legislative Department) New Delhi, the 2bt January; 1995/Maglta 1, 1916 (Saka) THE BANKING COMPANIES (ACQUISITION AND TRANSFER OFUNDERTAK.INGS) AMENDMENT ORDINANCE, 1995 No. 4 OF 1995 Promulgated by the President in the Forty-fifth Year of the Republic of India. An Ordinance further to amend the Banking Companies ( Acquisi­ tion and Transfer of Undertakings) Act , 1970 and the Banking Companies (Acquisition and Transfer ofUndertakings) Act, 1980. WHEREAS Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action; Now, THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of the Constitution, the President is pleased to promulgate the following Ordinance:-· CHAPTER I PRELIMINARY • . 1. (1) This Ordinance may be. called 'the Banking . <?ompanies (Ac- . .. · . . d T f. of Undertaking~) Amendment Ordmance, 1995. qu1s1tion an rans er , . . , . : . , ( 2) It shall come into force at once. Sborttilte and commen.. cement. ' . Amend.. meat of section 3. 2 TIIE GAZETTE OF INDIA EXTRAORDINARY CHAPTER ll AMENDMENT$ TO THE BANKING COMPANlF.S (ACQtJISfflON AND TRANSFER o:r UNDERTAKINGS) ACT, 1970 2. In section 3 of the Banking Companies (Acquisition and TranS'.fer of Undertakings) Act, 1970, after sub-section (2B), the fo1lowing sub­ sections shall be inserted, namely:- " (2BB) Notwithstanding anything contained in sub-section (2), the paid-up capital of a corresponding new bank constituted under sub­ section ( 1) may, from time to time and before any paid-up capital is raised by public is.sue un<.ler clause (c) of sub-section (2B), be reduced by- 1 (a) the Central Government, after consultation with the Reserve Bank, by cancelling any paid-up capital which is lost, or is unrepresented by available assets; ( b) the Board of Directors, after • consultation with the Reserve Bank and with the previom sanction of the Central Gov­ ernment, by paying off any paid-up capital which is in excess of the wan.ts of the corresponding n~w bank: Provided that in a case where such capital is lost, or is unrepre- • sented by available assets .because of amalgamation of another corres­ ponding new bank or a corresponding new bank as defined in clause (b) of section 2 of 'the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 with the corresponding new bank, such reduction may be done, either prospectively or retrospec­ tively, but not from a date earlier than the date of such amalgamation. ( 2BBA) (a) A corresponding new bank may, from time to time and after any paid-up capital hasi been raised by publio issue under clause (c) of sub-section (2B), by resolution passed at an annual general mee'ting of the shareholders entitled to vote, voting in person, or, where proxies are allowed, by proxy, and the votes cast in favour -0f the resolution are not less than three times the number of the votes, if any, cast against the resolution hy the shareholders so entitled _ and voting, reduce its paid-up capital in any way. (b) Wi'thout prejudice to the generality , of the foregoing po­ wer, the paid-up capital may be reduced by- ( i) extinguishing or reducing the liability on any of its . shares in reepect of share capital not paid-up; '(ii) either with or without extinguishing or reducing lia­ bility on any of its paid-up shares, cancelling any paid-up capi­ tal which is lost, or is unrepresented by available assets; or (iii) either with or without extinguishing or reducing lia­ bility on any of its paid-up shares paying off any paid-up share capital which is in excess Pi 'the wants of the corresponding new bank. • · , S of 1970 i • C 40of 1980. SSC. 1l TiiE 0AZE1TE -====- -~ OF INDIA EXTRAORDINARY (2BBB) Notwithstandi~~--=:.: :.:=.:-- :.:..:::- .. 3~ (2BB) or sub-section (2BBX anything • contained in sub-section ing new bank shall not be ~ the paid-up capital of a corespond­ below twenty-five per educed at any time so as lo render it on the date of commen~:nt. of the Paid-up capital of that bank as don and Transfer of Und mekinnt of the Banking Companies (Acquisi- erta • =) Am . "'" endment Ordinance, 1995.". CHAPTER III ~MENTS TO TllE BANKING Co UNDER MPANIES (ACQUISITION AND ThANsF& OF TAKINos) Ac:r, 1980 3, In section 3 of the Banki ; of.1 Undertakings) Act, 19BO ftng Compan_ies (Acquisition and Transfer . h 1 . ' a er sub-section (2B) th f lI • sections s a 1 be inse'tted, namely:- , e o owing ~ •• "(~BB) Notwithstandi . · . . the paid-up capital of ng anyth1~g contamed in sub-section (2), · sub-section (1) may fa corr~pontling new ,bank constitutel1 under , . rom time 'to r d b f ·a capital is raised b ubr . lllle an e ore any pa1 -up ( 2B) ,' be reduced {y.! ic issue under clause ( c) of sub -section ( a.) 'lhe Central Gove'rnment, after comrul'tation with the Reserve Bank, by cancelling any pax·d-up capital which is lost, .or. is unrepresented by available assets· . ' • • (b) , the Board af Dil'ectors, after consultatfon with ithe Reserve Bank and with the previoUs sanction of Central Govern• men:t, by paying off any paid-up capital which is in excess of the wants of the corresponding new bank: Provided that in a case where such capital is lost, or is unrepresen­ ted by available assets because of amalgamation of another corres­ ponding new bank or a corresponding new bank as defined in clause (d) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 with the corresponding new bank, such reduction may be done, either prospectively or retrospectively, but not from a date earlier than the date of such amalgamation. (2BBA) (a) A corresponding new bank may,. from time to time and after any paid-up capital has been raised by public issue under clause (c) of sub-section (2B), by resolution passed at an annual general meeting of the shareholders entitled to vote, voting in person, or, where proxies are allowed, by proxy, and the votes cast in favour of the resolution are not less than three times the number of the votes, if any, cast against the resolution by 'the shareholders so entitled and voting, reduce its paid-up capital in any way. (b) With~t prejudice \o the generality of the foregoing power, the paid-up capital may be reduced by- . • · · (i) extinguishing ·or • reducing' th~.; liability- :orl any • of its shares in re~pect of share capital not paid-up; , A."l:~mL m·!nt c : • ;ction '.I. TifB GAZ81TB OP INDIA BXTKAORDINARY (PAllT ll-&ic. I). ; . ,.. . . (ii) either with . or wit~~ut extingu~shing or -re?uclng liabi­ lity on any of its paid~up shares, cancellmg any paid-up capital whicli is lost, or is unrepresented by available assets; or (iii) either With or wi~out extinguishing or reducing liabi­ lity on any of its paid.up shares, paying off any paid-up share capital which is in excess of the wants of the corresponding new bank. (2BBB) Notwithstanding anything contained in sub-section (2BB) or sub-section (2BBA), the paid.up capital of a corresponding new bank shall not be reduced at any time so as to render it below twenty-five per cent. of the paid-up capital of that bank as on the date of commencement of the Banking Companies (Acquisition and Trans­ fer elf Undertakings) Amendment Ordinance, 1995.''. .. . . . . / SHANKER DAYAL SHARMA, President . K. L. MOHANPURIA, , . : Setj!. to the Govt. of India. PRINTJ!O BY 'DIil MAXMIIII. GOYDNJ,QDfJ' GP INDIA PRESS, MINTO ROAD NEW D.ELHl . . . • · . • ' ' . , . AM> PUBUSHEO BY THE CONTROLLER OF PUBLICATIONS, DELHI, 199S.