(1) Thr ee copies of th e M em or an du m of Asso cia tio n af ter be ing du ly signed in the meeting as re qu ired un de r sub -sectio n (2) of Section 3 sha ll be forw arde d by th e State Go ve rnmen t’s represen ta tiv e presen t in th e mee tin g to th e Co ntrolle r.
(2) The Co ntrolle r ma y re tu rn th e M em oran du m of Assoc iati on to th e send er for such corrections or cl ar i fications or mo dif ica tions as he ma y de em nec essary .
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(3) T he co nt ro lle r sha ll, af ter sati sfying him sel f th at th e M em or an du m of Ass ociatio n is in or de r an d meets the re qu irem en t of thi s Ac t an d rules mad e th ereu nd er an d th at th e State Go ve rnmen t is wi llin g an d read y to pa rti cipa te in th e pro po sed Corpo ra tio n, reg ister the M em or an du m an d in tok en th ereo f mak e necessa ry endo rse men t on the bo dy of al l th e th ree copies of the M em oran du m.
(4) O n reg ist er ing th e M em or an du m the Co ntrolle r sha ll also issu e un de r his ha nd an d seal a cer tif ica te to this effect an d sen d th e cer tif ica te toge ther with one or i gina l cop y of th e M em or an du m to the State Gov ernm en t’s repres en ta tiv e fro m wh om the se we re rec eived by him .
Effect of 5 .( 1) O n an d from the da te wh en the M em oran du m Regis tra tion. o f Associa tion is reg istere d an d a cer tif ica te to this effect is issu ed by th e Co nt ro lle r th e Co rporat ion sha ll be dulyco ns tit uted an d wil l be know n by a disti nc t nam e, as ap pr ov ed by th e Co ntrolle r.
(2) Fr om suc h da te as ref err ed to in sub -sectio n (1) th e Corpo ra tio n wil l be a body co rp orate ha ving pe rp e tu al successio n an d a comm on sea l an d sha ll, subjec t to an y restr ict ion s or conditions as may be prescri bed un de r this Ac t or an y ot he r en ac tm en t in force, ha ve powe r to ho ld an d dispose of pr op er ty an d to co nt ract , an d sha ll by th e said na me, sue or be sued an d do all ot he r things nec ess ary for th e pu rpose of th is Ac t.
dat^ofAsso- 6- (1) Ev ery Co rporat ion shall ha ve a M em oran du m of ciation. Ass ociatio n, co ntaining its object ives, reg ula tio ns an d pro cedu res an d such othe r m at te rs , as may be pre scr ibe d.
A M em or an du m wil l ha ve th e forc e of law on al l mem ber s of th e re leva nt Co rporat ion.
(2) A M em or an du m may be al te red only in the man ne r prescr ibed an d eve ry suc h al te ra tio n sha ll be du ly regis te red in th e m an ne r prescri be d wi th the Co ntro lle r an d will no t tak e effect un til it is so reg iste red .
Share ai^ a p '- 7. (1) A Co rporat ion sha ll have an au tho ris ed ordina ry members. sh ar e ca pi ta l divide d in to shares of Ru pees ten each.
(2) A Corpo ra tio n may also have pre ference share ca pi ta l divid ed in to sh are of Ru pees ten each.
(3) The State Go ve rnmen t sha ll subscribe to no t less th an fifty-on e pe r ce nt of the au thor ise d or di na ry sh ar e ca pi ta l of a Co rporat ion ei ther in cash or by wa y of the va lue of the land , bu ild ing s, eq uipm en t or machi ne ry or an y othe r assets ira ns ferre d to the Co rporati on .
(4) Ea ch ag ric ul tu ris t jo in in g a Co rporat ion a t th e tim e of its form ati on un de r Section 3 or on adm iss ion to th e Co rporat ion subsequent to it form ati on sha ll co nt ri bu te in cash to one ordina ry share of th e Co rporati on .
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(5) No Ag ric ul tu ris t shal l be allo wed to ho ld mo re th an one ordina ry share , in a Co rporat ion.
(6) T he State Go ve rnmen t or an Ag ric ul tu ris t ho lding an or di na ry share in a Co rporat ion m ay also co nt rib ut e to the pre fer ence share ca pi ta l of th e Corpo ra tio n ei ther in cash or by wa y of th e va lue of the la nd , bui ldings, eq ui p m en t or machine ry or an y ot he r asse ts tra ns ferre d to the Co rporat ion.
(7) A ho lder of one or more of th e O rd in ar y shares in a Co rporat ion shall be know n as “M em be r” of th e Co rporati on .
(8 ) An Agr icul tu ris t ho ld ing an or di na ry share in a Cor po ra tio n sha ll be know n as an “Ag ric ul turis t M em be r” .
(9) No mem be r sha ll tra nsfer or dispose of the shares he ld by him in the Corpo ra tio n except in the m an ne r pre s cr ibe d.
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(10) No tw ith stan ding an ything co ntain ed in an y othe r provisions of this Ac t, no mem be r of a fam ily of wh ich an ot he r mem be r is al read y in ag ric ul tu ris t mem be r of a Corpo ra tio n, shall be ad m itt ed as an ag ric ul tu ris t me mber of ei ther th at Corpo ra tio n or an y ot he r Co rporat ion.
M em be rship 8. (1) Af ter its in iti al fo rm ati on a Corpo ra tio n may ad m it Ad missi on , m or e, ag ric ul tu ris t mem be r, in the m an ne r prescri be d, righ ts , du ties .
(2) An ag ric ul tu ris t mem be r sha ll have suc h righ t an d du tie s as may be prescr ibed in the ru les or in th e Mem o ra ndum of Association.
C eas at io n of 9- (1) An ag ric ul tu ris t mem be r shall be lia ble to for- Mem be rsh ip . fei t his mem bersh ip an d cease to be a mem be r of th e Co r po ra tio n an d ma y, acc ord ing ly, be rem ov ed fro m such mem bersh ip in t he m an ne r prescri bed, if it is decid ed by th e Bo ard th at he has fai led to ab ide by th e proviso ns of this Ac t or rules' mad e th er eu nd er or th e terms an d con dit ion s co ntain ed in the M em or an du m of Association or bye-law s or for reason s of mi sco nduct de tr im en ta l to the inter es ts of th e Cor po ra tio n:
Prov ided th at th e Bo ard ma y, if it so desi res, in stea d of remo vin g suc h an ag ric ul tu ris t mem be r from th e mem be rsh ip of the Co rporat ion, allo w hi m to co nt inue as an Agr icul tu ris t mem be r, by rea lis ing a reason ab le com po un ding fee, no t exc eed ing one thou sa nd rupe es :
Prov ided fu rthe r th at an ag ric ul tu ris t mem be r aggr iev ed by a dec ision of the Board un de r thi s sub -sectio n, may ap pe al to the State Go ve rnmen t ag ain st such dec isio n of the Bo ard an d th e dec isio n of th e State Gov ernm en t on suc h an ap pe al shall be final an d bind ing on th e Co rporati on 'and th e Ag ric ul tu ris t mem be r concern ed .
6 Register of Share' holders.
(2) An ag ric ul tu ris t mem be r may a t an y tim e resign fro m th e mem bersh ip of a Corpo ra tio n by giv ing du e no tice in writ ing in the m an ne r prescr ibed to the Se cre tar y of the Co rporat ion.
(3) An ag ric ul tu ris t mem be r ceasing to be a mem be r of th e Corpo ra tio n un de r sub -sec tions (1) an d (2) shall be lia ble to be remo ved fro m the possession of the land or othe r pr op er ty of th e Corpo ra tio n al lo tte d for his use whi le he was a mem be r of the Co rporat ion.
(4) An ag ricu ltu ris t mem be r cea sing to be a mem be r of th e Co rporat ion sha ll for feit the am ou nt inv est ed by h im in th e or di na ry share s of the Corpo ra tio n bu t th e am ou nt inv est ed by hi m in th e pre fer ence shares wi ll be pa ya ble to him af te r re al isa tio n of all dues from him. The Cor po ra tio n shall also pa y to him reason ab le comp ensation for an y im mov ab le str uc tures cr ea ted by him or cro ps gro wn or an im als or bi rds ra ise d by h im on th e la nd o f the Co r po ra tio n with du e au th or ity fro m th e Corpo ra tio n an d left be hi nd by hi m :
Pr ov ided th at no such comp ensat ion sha ll be pa ya ble in respec t of str uc tu res erec ted , crops grow n or animals or bi rds ra ise d by th e sa id mem be r on th e land of the Corpo ra tio n with ou t du e au th or ity an d such st ructures , cro ps or an im als or bi rds shall be take n over by an d for feit ed to the Co rporati on .
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(5) An y sum s du e fro m an y ag ric ul tu ris t mem be r who ceases to be a mem be r of th e Co rporat ion un de r , sub - .
sec tion s (1) an d (2) sha ll be reali sab le as ar re ar of land reve nu e fro m him an d for th at pu rpose th e am ou nt du e to such a mem be r un de r sub -sectio n (4) m ay be ad jus ted by th e Co rporat ion again st th e due s of th e mem bers to the Co rporati on s.
(6) The am ou nt of or di na ry share ca pi ta l of an ag ri cu ltu ris t mem ber, wh ich is for fei ted un de r sub -section (4) wi ll be tra ns ferre d to the Re ser ve fund of th e Co rporat ion.
10. Ea ch Co rporat ion sha ll m aint ain a t its office a reg ister of the share-h olde rs an d shall en te r therein th e fol low ing pa rti cu la rs so far as t hey may be av ai lable na m ely:—
(i) T he name s an d add res s of the share -ho lde rs an d a statem en t of th e shares he ld by them , dis tingu ish ing each share by its deno tin g nu m be r ;
(ii) The da te on wh ich a per son is en tered as a share-h olde r ;
(iii) The da te on wh ich an y pe rson ceases to be a share-h olde r ; an d
(iv) Such othe r pa rti cu lars as may be prescri be d.
• t 7 M sa ag em en t. H . ^1) Ph e ge ne ra l su pe rin tend en ce , di rect io n an d , man ag em en t of th e affairs of every Cor po ra tion shall vest in a Bo ard of Direc tor s, wh ich ma y, subject to t he provis ions of this Ac t or the rul es or th e M em or an du m of Ass ociatio n pe rfo rm al l fun ctions of the Corpo ra tio n.
(2) The Bo ard , in dis charg ing its fun ctions shall ac t wi th du e re ga rd to th e in te rest of th e Corpo ra ton an d the ag ricu ltu ris t memb ers .
Board of 12. (1) The Bo ard of Dir ec tor s sha ll cons ist of th e follow- Direc tor s ing , na m el y;—
(a) No t less th an one h a lf of th e to ta l nu m be r of Di recto rs to be no minated by the State Go ve rn men t.
(b) The remaining nu m be r of Dire cto rs to be ele cte d at the an nu al ge ne ral mee tin g, in th e m an ne r pre scrib ed .
(c) A Cha irm an to be ele cte d from am on g th em selves by th e Di recto rs in th e m an ne r prescri be d, who shall be know n as the Ch ai rm an of th e Cor po ra tio n :
Pr ov ided th at on th e first cons tituti on of th e Bo ard , the Di recto rs ref err ed to in clause (b) an d th e Cha irm an refer re d to in clause (c) sh all also be no minated by the State Go ve rnmen t an d the Di recto rs an d Cha irm an so no minated sha ll, for th e pu rpose of thi s Ac t, be deem ed to be du ly el ec ted:
Prov ided fu rthe r th a t the Di rec tor s an d Cha irm an so no m in at ed shall ho ld office un til th e conclusion of the first an nual ge ne ra l mee tin g of th e Co rporati on .
(2) As soon as m ay be pos sib le af ter a Corpo ra tio n is regis ter ed un de r sub-sectio ns (3) an d (4) of Sec tion 4, the St at e Gov ernm en t sha ll no minate th e Di rec tor s an d C ha ir m an of the Co rporat ion.
(3) T he nu m be r of mem bers of a B oa rd of Di rec tor s sh all be as prescri be d in th e M em or an du m.
Te rm of office and reti rem ent of Directors.
Direc tor s no minated office du ring the