The Road Transport Corporations Act, 1950
23. Capital to the Corporation.
- The Central Government and the State
Government, may provide to a corporation established by the
State Government, in such proportion as may be agreed to by both the
Governments, any capital that may be required by the Corporation for the
purpose of carrying on the undertaking or for purposes connected therewith on
such terms and conditions, not inconsistent with the provisions of this Act, as
the State Government may, with the previous approval of the Central Government,
determine.
- 1[The Corporation may, whether or not any capital is provided to it under
sub-section(1), raise by the issue of shares such capital (hereafter in this
section referred to as the "authorised share capital") as may be authorised
in this behalf by the State
Government:
Provided that where any capital is provided to the Corporation under
sub-section (1), no capital may be raised under this sub-section without the
previous approval of the Central Government.
2A
Any capital raised
under sub-section (2) with the previous. approval of the Central Government may
be,-
- in addition to the capital provided to
the Corporation under sub-section (1);
- subscribed to by the Central Government or the State
Government, as the case may be, by converting the whole or any part of the
capital provided [whether before or after the commencement of the Road
Transport Corporations (Amendment)
Act, 1982] to the Corporation by that Government under sub -
section (1).]
- The 1[authorised share capital] of the Corporation shall be divided into
such number of shares as the State Government may determine; and, the number of
shares which shall be subscribed by the
State Government, the Central Government and other parties (including persons
whose undertakings have been acquired by the Corporation)
shall also be determined by the State Government, in consultation with the
Central Government.
- The allotment of shares to other parties mentioned in sub -
section (3) shall be made by the Corporation in such manner as may be
prescribed.
- The shares of the Corporation shall
not be transferable except in accordance with the rules made under this Act.
- The Corporation may at any time, with
the previous approval of the State Government, redeem the shares issued to the
other parties under sub-section (4) in such manner as may be prescribed.
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