The Industrial Development Bank of India (Amendment) Ordinance, 1995

~1 go 1)0~0-aaoo-t/9,& --·-~ .. ·---~- ~~ I ~ EXTRAORDINARY 1'flT IT--l!l'lli" t PART 11-Sectlon 1 lflfU<fll~ ~ st'f~tf~ .PUBLJSttED 13Y AUTJiORlTY ;~·--;1 ~---r~:;~~~:-;~-;~, =;;, -1995''"" 23, -~~~--- --------- N~------ - --~~~~~~CDAY.~.\.:...U.\R,Y 13, 1995/PAUSA 23, 1916 I :_ ~ ··;llf ~ .r~·~-~-;{{-~t-~~~ ~ ::-~~ ;;;~~~ fflf ~-~~-;~ Stparllfe puging is gnc11 to Ibis Part in Older that It may be filed a.~ a separate compilalion __ _ ., ____ -----~ - MINISTRY Of LAW, .lUSTICE-~-~~P~N~~:AFFAUtS· ·-··=: <Legislative Depart;ment) THE New Delhi, the 13th January, 1995/Pausa 23, 1916 (Saka) INDUSTRIAL DEVELOPMENT BANK OF JNDJA (AMENDMENT) ORDINANCE. 1995 No. 2 OF 1995 .Promulgated by the President in the Forty-fifth Year of the Repub­ lic of India. An Ordinance further to amend the ln.dustrial Development Bank of ' · • • • . India Act, 1964. · · · WJ-IEREAS the Industrial Development Bank of India (Amendment) Ordinance, 1994 to provide for the • aforesaid matter was promulgated by the President on the 12th day of October, 1994; • • • AND WHEREAS the Industrial Development Ballk of India (Amend­ ment) Bill 1994 to replace the said Ordinance has been passed by the House of the People and is pending in the Council of States;· • AND WHEREAS Parliament is not in session and the President is satis­ fied that circumstances exist . whicl). 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 01•dinance: - 1. ( 1) This Ordinance 1µay be called the Industrial Development Bank of India (Amendment) Ordinance, 1995 • . (2) It shall be d~med to 1:ave come into force on tlle 12th day of October, 1994, • Short title and.com~ mence­ ment. • Amend· mentof .section 2. Suootitu• tion of new section for section{ Autho­ rised capital Amend­ ment of section4A.. Insertion ofnew sections 4C, 4D and4E. Issued capital. Reduction of share capital. ,,. . '• ' . . . ~rit:J· • ··· • TIIE . GAiETfE OF INDIA ~~~~~:~ARY: ·: . ·- -·-_--:_:_· .. : :._ . , . . iPA11{iJ_ __ - - 2 f the Industrial Development 2. In section o d . the principal Act), 1964 (hereinafter referre to. as •• • el ·- Bank of India Act, for clause ( d), the f 11 . clause shall be substituted, nam y. . o owmg . ,, , . '(d) ''Industrial FinaJ1ce ~or_Poration ~eans ~e Industrial . C tion of India L1m1tcd fonned and registered under Fmance orpora the Companiei; : Act,. 1~56;'. · 3_ F~r section 4 of the principal Act, the following section shaU be substituted, nameLy:- "4. ( 1) The authorised capital of the Development Bank shaII be two thousand croi.-es of rupees divided into one hundred and fifty crores fully paid-up equity share5 of rupees ten eac~ and, subject to the provisions of section 4E, fifty crores of f_ully paid.up redeemable preference shares of rupees ten each . •. • • • . (2) The Development Bank may, from time to time, by a resolu- ' .'. . .... tion in general meeting, increase: the authorised capital to an am.ount • • • not exceeding five thousand crom; of rupees consisting of such number of. equi'ty shares and redeemable preference shares .-'as :it deems fit.". 4- In section 4A of the principal Act~ su6:Jction ( 2) shall be omitted- /,; C: :5. After section 4B of _the principal Act, the follow_ing sections shill be inserted, name_ly:-· • , .. .. .. ,J \ \. " . "4C. ( 1) The issued capital of the Development Bank of seven • ·i:: __ hundred and fiftij-· three crores of rupees which stands fuUy vested in and subscribed by the Central Government immediately before the com­ . mencement of the Industrial Development Bank of India (Amendment) ( :':-~ ·ordmance, • 1995 shall, on such commencement, stand _ divided into -,:. : seventy~five crores and thirty iakhs equity shares of rupees ten each. · (2) The Board may, from time to time, increase the issued equity -·/ • share capital of the Development Bank by allotment of shares to such ' ::. ·persons and on such terms and conditions as the.Board• may detennine: . . Provid_ed that no increase in the issued equity capital shall be made ' '. :. :in such a· rrirumer that the Central ·Government• holds at any time less e r' • than: fifty.:one per cent. of the issued equity capital of the Development Bank . l I j • . . . • . . • . - . . - . . . i.'•; •• '. '4D. (l) . The Development Bank may, by a resolution passed' • •.•in. a general meeting of the share-holders, reduc"e its share capit~l in: any way. • • • • :;·: ·:(2) Without prejudice to t'he genera~.ity -of the . ~~regoing pow_el\ _ the ~ha!e capital may be reduced by,.:.;_ : • .i<> ·-c ,- ta) ~xiinguishing o~ reducing the .. liabtlity. on any: of its :eq'llity shares in respect of share capital not paid up; ' • • • • • "· 1, i _; ·i :j l ;1 1. : 1 ti1 'i . -·~ i .i )1 -:::::::r-::--=-- --- - ------.... -·---::-:::::... ___ ___ ----- ----- - . . (b) either with o~ Without extinguishing, ~r reducing lia--' ' • b1litt on a_~ 1 Y ~f its. equity sha~~s, cancelling any paid-up share c~pita: which is. Jos~, or is unrepresented by availabl~ assets; or 'fHE _GAZETTE Or lNDlA EX1 RAORDINARY 3 (c) either with or without extinguishing or 'reducing liabi­ ·lity_ on · any of its equity shares, paying off any paid-up share capital • which is in excess· of the wants . of the Development Bank. • • (3) In' any geriera~ meeting referred to in ·sub-section (1), the resolution for reduction. of share capital 'Shall be pass·ed by share­ ,holders 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 ff any, cast • against the resol·ution by sbareholders so entitled and voting. 4E . (1) T.he Central Government may, at any time after the . commencement of the Ind'ustrial Development Bank of India (Am­ endment) Ordinance, 1995 and by notification in the Official Gazette, convert such numbel' of equity shares held by it no't exceeding fifty croi·es as it may decide into redeemal;>le preference shares . (2) The rec.eemable preference shares referred to in sub-section (1) shall- (ajcarry such fixed·rate of dividend as the Central Government may specify at the time of such conversion, and · · · (b) neither be transferable nor car17 . any voting rights. • (3) The redeemable preference shares referred .. ~o .in sub-section • (1) shall be redeemed by the Development Bank \VJ.thin thre.e years from the date o'f such conversion in such instalments and in s'llch manner as the Board may determine.''. . • • 6. In section 5 of the principal ~t,- (a) for sub-sections (1) an , · t e o .. ~. d (2) h foll ,.,.,..,g sub-sections shall be substituted, namely:- . • di. · t· n a d manage,. "(1) The general superintendence, rec to n men.t of the affairs and business of the Devel~pmen't Bank shall • • B d ·. f direetors which may exercise all powers and vest m a oar O • • d d b the t d things as may be exercise or one y • do ali such :cB::: and are' not by. this Act expresslr directed or Dev~ opmen b d by the Development Bank in general reqmred to e one 1 · • meeting. • · bl b ·t direct that any power exerc1sa e y 1 (2) :11e Board11m? be exercisable in such cases and subject unde·r this Ac~ ~ha ? so as ma be specified by it, by the to such cond1t1ons, if. any, : hole.:time director."; ch ·rman managing director or . t e w ai ' ·tted (b) sub-section (4) shal~ be o~ • • • • 6 f the principal Ac\,.,- · · 'l. In section ° ·f llowing sub-section shall be subs- (a) ror sub-section (l) , the O , , tituted namely:- · ·.. · - 1' ' • • • ...J.:i .h 11 . onsist ;of the following ~am~ r -'-' (l )' The Boaro. s a c . • . • • director appointed by • , hairman and a managmg (a) a c .. . · the Central Government: '· ., ;. Conversior of equity shares into redeemabl<­ preferencc shares. Amend­ ment of section 5. Amend­ ment of section 6. 4 THE GAZBTI 8 OF INDIA EXTRAORDINARY Pi:-<>vit1e<1 th~t the same person may be appointed to function both as chairman and as managing director• . , . (b) one whole-time director . app~inted by the Central Governtnent on the recommendation of 'the Board; ( c) two ~irector~ who shall be officials of the Central Government riorninated by the Central Government; {d) three directo.rs from amongst persons having special knowledge of, and professional experience in, sciett.ce, tech­ nology, economics, industry, banking, industrial co.opera­ tives, law, industrial finance, investment, accountancy, mar­ keting or any other matter, the special knowledge of, and · professional experience in, which would, in the opinion of the Central. Government, be useful to the Development Bank, nominated by the Central Government; and • (e) such n~mber of directors elected, in the prescribed ttianner, by shareholders other than the Central Government, whos,e names are entered on the register of shareholders of the Development Bank nine~y days before the . dat_e of the meeting in which such election takes place on the following basis, namelf-· • (i) wher~ the total amoupt of equity share capital i§ued to such sh_arehQlders is ten per cent. or less of the iota1 issued eqtihy ctipital, tw:o directors; -- . - . . (ii) where the tOtlll amount of equity share capital issued to such ~~areholders is more than ten per 'cent. but less than twenty-five per cent. of the total issued ~uity ciipital, three directors; and (iii) where the total equity share capital issued to such shareholqers is twenty-five per cent. or more of the total issued equity capital, four directors: I . • • p~~t1ded that ilntil the a~sumption of charge by the elected ditectoi·s under this clause, the Central Government may at any ti~e nominate silcih nwnber of directors, not exceeding four, from amongst pers·ons having · ~pecial'. know­ ledge e>f, and professional experience in, science, technology, economics, industry, banking, industrial co-operatives, law, industrial finance, irivestmerit, ·accot\ntancy, marketing or any other . mitt~~. the speci~l . knowledge of, and professional experience in, which would, in the opinion . of th_e Central Government, be usefol to .the Development Bank for carry­ ing O\lt its functions."~ . . ' (b) in sub-sections (2) and (3), for the words ••the chairman and tpe managin~. direc:te>r", the words '-'the . chairman, the_ managing . direc_tor and ~he whole-time director" shall be substituted; (c) in sub-sections (24) a~d . (JA), f~r the words "the chairman or the managing director" wherever they occur, the words ''the SliC. l] Tl-ffi GAzsn-..- - ____ _____ ..,, 1 E OF INDL\ EXfRAORDINAJt.T 5 • -·- .=:::-:---:::::::-- ---.::-::-::-:. -----------===~:c-- chainnan, the man.:i,..;.. di ••• . - ·---:~-:.::::.. bst·t ted ~ .. ,g rector or the whole-time director•· shah be SU l U ; • •• (cl) f>or• su~sOCtioi, {4A)· th ~ 11 · · sub.section shall be substituted, namely:_ • . , e o ow,~g ; ''(4A) S . Ubjeci to the provisions of sub-section ( 4) ,- • (a) every director nominated under clause (d) of sub­ section (l) shall hold office for such term not exceeding three years as the Central Government may specify in this behalf and thereafte t·1 h . · 11 b li • r un 1 1s successor assumes office, and sha e e gible for re-nomination: Provided that no such director shall hold office conti­ • • nuously for a period exceeding six years; and (b) every director elected under clause (e) of sub­ sect~on . (1) shall hold office for three years and thereaf1er • until his successor assumes office and shall be eHgible for re-election: ' · • Provided further that no ~~ch director shall hold office continuously for a period exceeding six years;"; (e) after sub-section (4A) , the. frillowing sub.section shall be inserted, _n_amely:- · · • • . . · - . · . . "(4B) The shareholders, other than the Central Government, ~ay, after-giving to the director. a reasonable opportunity of be- 1~g _heard in th_~ manner as may be ·. presc.ribed, by resolution passed, by majority of the votes of such shareholders holding in the aggregate not less than one-half of the share capital held by such shareholders, remove • any director elected under· clause ( e) of sub.section (1) and elect another director in his place to fill the vacancy : so CAUsed.''; . (f) for sub-sectjon (5), the following .su~sections shall be substi- iut~d; narilely: - • • • , ... . ... '. , , , "(5) ti) A meeting of th~ _Boaril shali bi{ held at least once c~1.ry .thi:cr n1i:r.th!-. nm: iitleast four 1neetings shall be held ~very year and the me-clings may he held at such places as may be prescnbed . • ( ii) :N~~ice ~f ever;, _mceti~g of t~e· B?ard shall ·b~ giv_e~ i~ writing , to ~very. d~ctor fo_r -~e time .be~g, 1n India, and at his usual ad.cjress i_~ I~dia .to ev:ery ~~er director. ·. , 5 A> Subject tn ti\' pr~vlslon~. co~tainhci in this Chapter, the • • d ma m~et at sucli. times and places ~nd shal~ _obs~rve ~~h ' Boar y d • gard to transaction of its business mcludmg rules of proce ure 111 re , . . . . - . . . . 'bed " • d • f resolutions as may be prescri . . the manner of a option o . .. . - . . .. . .. ~' ~h ~~- of t~e prin~pa; A,; ;hall ~ ~J • • '! l ~ ' . Omission of section 6A. , f Jnx-rt.ion ofn.:-w ~lions 8Band6C. Di.squa.li. dcations uf direc· \ors. Vacation of office by director. Amend­ mentof section 7. 6 nm GAZETl'E OF INDIA BXTRAOROINARY I 1'\RT 11 9. After section 6A of the principal Act, the following sections shall be inserted namely:- "6B. ( l) A person shall uot be eligible_ for being elected as a director clause ( e) of sub-section ( 1 ) ' of section 61 if he- t ,1 J h:is l,ecn tumid Lo be of ·unsound miud by 1.1 <.'ourt of com­ petent jurisdiction · and the finding is in force; ( b) i., an . und;schnr!,!1:d jnsolvcnt; (c:) hus appfo:d to b~ ndjudicated as un insolvent and hi~ applica­ tion is pending; . (d) has bet.'"11 convicted by a court of any oticnc~ involving moral turpitude and scntcncetl in respect thereof to jmprisonmcnt for not less than sb.: months and a period of five years ha.,; not elapsed from the date of c:,,piry of t!h~ SL":1trn,~; or tc) has net paid auy call in respect of shares of the DcvJ!op111cnl Book held by him, whether alone or jointly with others, and six: months have elapsed from the last day fixed for the payment of the call. 6C. { l) The office of a director sh!lll becom~ vacant if he- ( a) becomes :tubject t.o any oti the disqualificatiom men- tioned· in section 6B: or • • (b) resigns · his office by giving notice in writing under his hand and the resignation is accepted; or . . {c)_ ab$e'nts hi~elf from three cons~utive meetings of the . Board without . obtaining leave 9_f absence ~om: the Board. (2) Notwithstandirig anything m clause· (a) . of sub-section (1), the disqualifications referred to in tha't cause ·shall riot ·take effect- (a) for thirty days from t}:le date of -.the adjudication, sen- tence or order; ' (b) where any ·appeal ·or~·petition is preferred within thirty days aforesaid against the adjudication, sentence or conviction resulting in the sentence Ql" order . ·until the expiry of seven days from the da·te on which such appeal or petition is disposed of; or • . • (c) where within the seven days aforesaid, any further appeal . • - or petition is preferred- h1,. respect of the . adjudication, sentence, conviction or order and .the appeal or petition, if allowed, would result in 'the removal of the disqualification, until such further appeal or . petition is disposed of.'', I to. · In ~ctlon 7 .of the principal Ac.t, .for•sixb-se.ction {!);t~eifoUowing sub-section shall . be substitu~, n~mely:~ • •• .. • • • • "(l) The Board shalJ constitute an Executive Committee consist­ ing of the chairman: the managing director, the whole-titne"director and such other directors as it may deem fit.''. • SEC- 1] THE G . • : •• . . --- AZEne OF INDIA EXTRAORDJNAR~ • -------. '/ 11. In section 8 of the . • . • • ·-- _- proviso shall be substit tedPnncip~l Act, for the . ;proyiso the following • u , namely:- . "Provided that no f • • . : -. •. _ . app0 inte_d whole-time ees shall be_ payable to the chatrman, if he is time director or to a~ or ~o th~ managing director or to 1he whole- ernment. ". Y O .er director. who is an official of the Gov- • ' • • • I . ··i2 . • · . • · · • In section 9 of the r' . . . . . . . . • . , . . . ( C) (ca), (f) and (g' ) f p 1!cipa~ Act, In suO,:sectio_n· ct)., in c~auses (a) 1 ' I or ,,,ue words " h' h Ce~tral Government in this behalf" w ic ~ay be notified by the wluch may be approved b h , _wherever they o<:cur, the words . , • • • • • • Y t . e Board m this behalf" shall be substituted . . . .. ~ . . ' 13; .. In section 11 ·of th •·. · .. . • , .. · . •. . e pnn<!ipal Act,fr1 sub-section (l),- · • (a) .in clause (c) f th · • , • • • • . words "the Boa d'' 'h ollr e words "the CentTal Government", the r s a be substituted• ' ( b) for clause ( d) the follo . 1 1 n_amely:~- • . • .. . .: ' • . wm~ cause shall be substituted, the ;!:;d~ccept deposits on .such terms .as may .be .. approVed by ~4- In section 12 of the principal Act, s~b-se~on, (;), and (4) shall be omitted. •. • t5.' After section 13· of ilie'principalAct the f~ll~~ng Cbapters shall he inserted, namely: - ·' . . . . :: .- .- · "CHAPTER IV-A .. . · SHARES 13A. (1) Save as otherwise · provided in sub-section ·(2),·· the ·.· equity shares of the Development Bank shall' be freely _transferable. . . (2) Nothing contained in sub-sec~ton (1) shall entitle the Cent­ ral Government to transfer. any shares held by it . in the Development Bank if such transfer will resul~ in re~ucing the equity shares held by it to less than fifty-one per cent. of the issued equity capital of the Development Bank. 13B. (1) The Development Bank shall ·keep at its head office a register, in one or more books, . of the shareholders and shall enter therein the following particulars so far as they may be available, namely:.- . · • ( i) the· names-, addresses ·and occupations, if any, of ... the shareholders and a statement of the shares held by each share­ holder, distinguishing each share by its d~noting nmnber; . ·.- • - • - . (ii)" the date. on which .each -person is so entered as a share­ holder; (iii) the date on which any person ceases to be a share- holder: and ,.... Amend· mentof section 8. Amend· mentof section 9. Azpe,Jjld· men.to! section 11. Am¢nd/ mentof section 12. Insertion of new Chapters IV-A and IV-B. Free transfer ability fo shares. Register of share­ h•Jlders. Tru.st not to be enter­ ed on tfie reglster· of share­ holders. Board'• right to refuse registra­ tion of transfer of sI1ares. Shares to be securities under tb·e Indian Trn~ts Act, 18_82. 3 t . THE OAZE'ITB OF INDIA EXTRAORDINARY (PART Jl._ (iv) such other particulars as may be prescribed. (2) Notwithstanding anything • c<>ntainecl in sub ... seclion (l). it shall be lawful for the Development Bank to keep the register ·of the s~arellold~~ in computer floppi~s qr cijsk~ttes ~ti~je~t ~-~--such snfe- 8m~rqs as- ma.y be pres.cri~d. . , (3) Notwithstanding anything contained ·in the Indian Evidence Act, 1872, a copy of, or extract from, the register of shareholders, ~rtified to be a true copy under the hand of an officer of the Deve-­ lopmen t Bank authorised in t~is ~half, sh~li; u;.' all leg~l proceedings, be admissible in evidence. • • • • • •• • • "'. " • • : ; .· · • •. ·.: ·, .. :·. . , ( -·· 13C. Notwithstanding anything contained in section 13B • no notice of any trµst, expre8$, implied or constructive, shalt be entered 0;11 the regii~t,er_ of s11~reholders or be rec~ivable by the Development Bank:· . · . .. . . · . - · ·· · · · · 13D. (1) The Board may refuse to register the transfer of ~ny _shares in t~e name of the t~ansferee on any· one or t:nQre of the fol­ lowing grounds, and • on . no· other ground, namely:-· (a) the transfer of the shares is in contra~entio~ of the pro­ visions of -this Act br regulations made thereunder or any other law· ' • , .... (b) _the ~ransfer of tpe shares, in the opinion of the Board, fri prejudicial to the interests of the Deveiopment Bank ~r t~ the public interest; • (c) the transfer 0£ shares is prohibited by an order of a court, tribunal or any other authority under any law for the time beini in force. (2) The Board shall, befoi~ .tile expiry of two months from the date on which the instrument· of transfer of shares of Devel<>plll;ent Bank is lodged with it for the purpose of registration of s4<:p, transfer, not only form, in ·gPod· fajth, its opinion q$ to whether sµ.c:Ji registra­ tion ought not or ought to be refused on any of the grounds referred to in sub-secti-on (i). but afao,....:.. ' - • • • • • (a) if it has formed the opinion that such r_egistration ought not be·so refused, effect such registrationi and: • ,. ... • , ' . (b) if it has formed the opinion that such registration ought to be refused •on any of tpe gt~unds mentioned in sub;-se~tion (1) , • intimate the transferor and the 'transferee by notice _in ·writing. (3) An appeal against the _order of refusal of the Board under sub section (2) shaU Jie to the Central Government and the procedllr.-: for filing and hearing of such appeaJ shall be in accordance with the rules made by . the Central Government in this behalf: ... I of 1872. .. • 13E. Notwithstanding .anyt~ng contained in th~-India .T~usts Act, 1882, the shares of the Devdopment Bank shall be deemed to he_ inc]ud- 2 of 18~~- .ed among the-securities enumerated· fn section .. 20 ·of':the_ ~aid Act. 26 ofllllll. sat• 1l TliE o .. ., · . --::====~ · ~ -- ~El"tE: OF INDIA EXTRAOR01NARY 9 . . . ~ -- --- - -- - ·-· ·---- . - --:".:,_::"._,-----,--- CH APTER IV-B ' •• .;/ MEE~lNG ~ND PROCEEDINGS l 3F . ( 1) The De • • - , • . dition to any other ~elopment Bank shall in each year hold, m ad- me,·tm meet~g an~ shall s . ~ gs, a g~!1eral meeting as its annual general not more than ru:!~ the meetrug as sucn in the ooti~ calling it; and general meeting and th nlbs sh.all elaP5C between. the date of one annual at of the next: . · _ -Provided that the De 1 . . ral meeting within a v~ opmen~ Bank may hold the first annual gene- lQts shar.es for the fipen~d of six m~ths from t~e date on which it al- - • • · r.st time to public for suf>scnption: . Provided further that th Cen . -. . - • time within which n . e tral Govc~ent may extent the period not d' a Y annual general meeting shall be held by a excee ing three months. ' b . (~) Every annu_~l general meeting shall be called for a time during e·:;:me,ss hhours, ~n a day that is not a public holiday, and shall be held 1 . er at ead office or at some other place within the city or town in •. which ~ h.ead office is sifuate. . . _ _ . Explanat~n.-~or the purposes of this • section, "public hottdoy" _ means a public hoh¢ly within the meaning of the Negotiable Instru- ments Act, 18,81: • • Provided that so Sunday shall be deemed to be such a holiday in rela.tion to any meeting: Provided further that no day declared by the Central • Govern­ ment to be a public holiday shall be deemed to be such a holiday, in relation to any meeting, unless the declaration was notified before the issue of the notice convening such meeting; • 13G. Every shareholder of the I>evelopment Bank holding equity .-shares shall have · a right to vote in respect of such shares on every resolution and his voting right on a poll shall be _in proportion to his share of the paid~up equity capital of the Development Bank: .-Provided; however, that no slharehol'der, o'l:her than the Central Government , shall be entitled to exercise voting rights in respect of ' • any equity shares held ~ him in excess of ten per cent. of the issued equity capital. • • ; 13H. (1) The shareholders present at an annual general meeting shall be entitled to discuss and adopt_;_ ·_ • (a) the balance shee,t and proµ.t and loss a~co~t of the Development Bank made up to t}le date on which H:s accO\mts are closed and balanced; • • (b) the report of working of tbe Developll}ent Bank; f~r the J)eriod covered by the accounts; - Annual geru:ral meeting. Restiric­ tion on exercising of voting right . Matters tobe discu.ssed and-pro­ cedure in annual general meeting. (c) the auditor's report on the balance sheet and accounts; (d) proposals for declaration of dividend and capitalisation of reserves. '.I \i <.1 Amend­ ment of section 18. Amend­ ment of section 22. Amend­ ment of section 23. Insertioii of new section 32A. 10 THE OAZEITE OF INDIA EXTRAORDINARY - (2) The shar~holder.s present at an annual general meeting may also discuss any other matter to be transacted at such meetings in accordance with the provisions of this Act. (3) :The matters relating tO-.:. . • ( a) the manner in which annual ·general 'meeting or other meetings are held under this Act and the procedure to be followed ~~; • (b) the manner in which voting rights may:b.e .e~ercised and resolutions may be passed; and (c) the pr~cedure for transaction of bu.s.in~ss af 'such' meet­ ings and related matters- .' ,/ ' • shall be su~h as may be prescribed;": •. , i" _ 16. In section 18 of the principal Act, in sub-secti·on (3), for the words "Central Government", the words "Development Bank"·:shall be substituted. 71. In section 22 of the principal Act,•in sub-section 1(2); the following s1:1~ection shall be Sl\bstitl.!-ted, namely:: . _, .. , ... ,, .. . . •• . , . . . . . . , . - . ~-. , . ~ r . . . . - . _ " (2) After making provision for bad an.ti doubtful . debts, depre- ciation of assets and: for all other matters for which provision is neces- . sary or expedient or which_ is, usually provided for by . ban,kers and for the reserve fund referred to in sub-section (1) , ,and f3I~er t,ransferring a part of the profits to such other reserves or funds as may be consi- • dered appropriate, the Board may, .. out of .its net ... : :profits, .cleclare a dividend.". " :,,;; .. , ·-" .s ~, ., ) · · , ·~ · ( , ~~-:}J 18. (1) In section -2..'3 of.~the ptjncipal Act,__, ,, , • .,.·, , . , •. • , J • . • . . • ;,, •• , .Ji · . , ·-'"' ' } ,.. ·~ · (la) for sub-'.sect~9n 0),:. the ~llowip.g .sub,~sectioi; sh_~ll be subst?'- tuted, .namely: 7 . • .; <::: . -- ,,: c~. _:; :_:,. : y · ·:; ; , • • 0 • '.':; i.t, . . . . : - " ( 1) The accoun~~ of th~ D~velopm;~t ~k shall b~ • audited • "i,; auditors duly qualified to aC!t as auditor~ under • sub-section f.· , ii ' .' ) (1) of section 226_ of the Companies Art, 1956 who ·shall be ap-­ ; ,) .i'.;. pointed by the Development Bank in general meeting of the 1 of 1956 . . -: . b-·,:c~: • shareholders out of the panel of auditors approved by the Reserve Bank for such term and on such remuneration as. the Reserve Bank may fix."; , (b) in sub-section (5), for the words ''Within foll! months from the date on which its accounts are closed and balanced" the words "within. one month from the da.te on\vhich the annual gene~al meeting is held" shall be substituted. • , • • • • 19. After section 32 of the prmcipal Act, th,e :rollpwing section shall be inserted, namely:- • • • • • • • . ,, • l , , _., • • . ••, { :} s,;c. 11 ·1 • THE GAZETTE O . - - -- -::::-:--__ F INDIA 'EXTRAO'D'l"IINARY :::- ----~ iw., II "32A. (1) N ~------• • . otwithstandi . -..:.::::·-=========---==- for the tune .being in fur ng anything contained in any other law NOfflina. _de~its, h9nds or other scee, ~~ere a nozn.ination in respect of any tion ia curu1es • · respcc of. the amount due on such d . lS made in the prescribed manner, deposi:s, death of the _deposit<>r or h e~ts, bonds or securities shall, on the bonds the nominee subject to a O . er t~ereof, vest in, and be payable to, etc. to such depasits bonds ny ngh,t._ title or interest of any other person ' or securities ·<2) ¾Y payment b h • · · • the provisions of sub-seciio~ e ~velopment ~ank in accordance with the Development Ba· nk f . ( ) shall constitute a ful1 discharge to o Its IiabTty • bonds or securities.". 1 .1 m respect of such deposits, 20. In section 37 ~f the .principal Act,­ . (a) _in. sub-section (2),- •• • • (i) in clause (a) the word " • • ·: . . of resolutions'' shall b '. s and the manner of adoption ., . e inserted at the end· 1 • ' : ' (ii) after clause (da) ,, the following clauses shall be inser­ted, namely:- • ·"(db · ·1 • ) the manner m which and the conditions subject to which shares may be held and transferred· • ' ( de) matters relating to the rights of shareholders; . ( dd) the maintenance of share registers and the parti- culars to be entered therein· ' • (de) the safeguards to be observed in the maintenance • •, .;_; , 1 !"ofi:egister of shareholders on computer floppies or diskettes; ( df) the inspection and closure of the registers and .all other matters connected therewith; ( dg) the holding and · conduct of elections of directors under this Act and the detenn.ination of disputes regarding the qualification of directors; ( dh) the manner in which general meetings shall be convened the procedure 'to be followed thereat, the manner in which' voting rights may be exerci~d, resolutions passed , and business transacted in such meetmgs and other matters relating to meetings; ( di) the manner in which notices may be served on shareholders or other persons; ( dj) the manner in which nomination may be made in terms of section 32.A;"; · · • (4) the following sub-section shall be sub-( b) for sub-section , stituted, namely:- } tion or rule made under this Act shall be " ( 4) Every regubea. after it :is• milde(befO'I'e each/ -House of .laid, as soon :as may . . . . . . · A.mead:-.. : . mentor . sectien 37: Repeal aod savin&, 12 TIIE GAZETI'E OF INDIA EXTRAORDINARY I l'ART ll-Stc - ----·• -- - -:==.:::::::=- --- ::-:::::::. - ·- --·-::::..·:-··-.-:-::::::::::~ Parliament, while it i~ iJi,- ~~~ion, fo~ a lota_l period of thirty days which may be compnsed-_m or-e ~ion or m • t\,\'o _or more succes. , . _;siy~ SCj5Sions,. and ~f, before -the e~P.11:)' o( tp~ §C$SJOn, immediately 1 • ,", . J~owing -~e ~sion _or tho su~ce~1v~. ~s.1ons ·• aforesaid, both . l{ouse.s a~ee in makmg -~y modifica.tion; m-,_Qie '. regulation or fl,lle or both Houses ~ee th~t th.e regulatmn or rule should not be made, the regulation· or, · rule ~h~U 0le.r:~after have ·effect only in such modifie,d fom1 or be of no effect, as the case may be· so however, that any such .modification or annulment shall be ~ith~ out prejudice to th~ v~lidity ~{ anything previous!Jr done under .:... 1 ,, that regulation or 1-uie. . 21. (1) The Industrial Development Bank of India (Amenctment) Ordinan~. 1994 is hereby repealed. ·· (2) Notwithstanding such repeal, · anything done or any action taken under the principal Act, as amended by the said Ordinance, shall be deemed to have been_qpne or taken unde~ the princ;ipal Act, as amended \ .. . - . ) . . ... ,.. • . . . ' ' , . by this Ordinance . , .. ,. ·,· • . ,)' .. . _; ::r .. ~,.- \,' .:·· -~j ( ~: ~. :· , ) ~• . •J !"-; 0 ):::< ~J: ·: .: .-, . . . - _, - . ;;.;· · ·--,,-_,;... ; _:· '. ~ . • .I; SH,A.NK,ER.r>AY AL SHARMA, ·President . . , .K. L. MOHANPURIA .. Secy. to the Govt. of Indi(l . - · ----------------------- -- PQNTJ!D JIY '!BS IMM.Mlmt, ~"I' OP JNDL\ P.RJ!SS, MINTO ROAD, NBW DELJfi AND 1119LISJU!I> BY 111P. CONTROLLER OP PVBUCA110N'S, D&.llJ, 1994. Ord. 1J c 1994 , ..