(7) Notwithstanding anything contained in the Income-tax Act, 1961 or any other enactment for the time heing in force relating to tax on income, profits or gains, the Company shall not be liable to pay income-tax or any other tax for a period of five years computed from the appointed day in respect of any income, profits or gains derived, or any amount received by the Company.
43 of 1961.
(2) The transfer and vesting; of the undertakings or any part thereof in terms of section 3 aball not be construed as a transfer within the meaning of the Income-tax Act, 1961 for the purposes of capital gains. 43 of 1961.
Guarantee to be operative.
8. Any guarantee given for or in favour of the Reconstruction Bank with respect to any loan, lease finance or other assistance shall continue to be operative in relation to the Company.
Arrangement with Company on appointment of directors to prevail.
9. (/) Where any arrangement entered into by the company with an industrial or other concern provides for the appointment by the company of one or more directors of such concern, such provision ;and any appointment of directors made in pursuance thereof shall be valid and effective notwithstanding anything to the contrary contained \a the Companies Act, 1956 or in any other law for the time being in force or in the memorandum, articles of association or any other instrument relating to such concern, and any provision regarding share qualification, age limit, number of directorships, removal from office of directors and such like conditions contained in any such law or instrument aforesaid, shall not apply to any director appointed by the company in pursuance of the arrangement as aforesaid.
1 of 1956.
(2) Any director appointed in pursuance of sub-section (1) shall—
(a) hold office during the pleasure of the company and may be removed or • substituted by any person by order in writing by the company;
(6) not incur any obligation or liability by teason only of his being a director or for anything done or omitted to be dodo in good faith in the discharge of bis duties as a director or anything in relation thereto;
(c) not be liable to retirement by rotation and shall not be taken into account for computing the number of directors liable to such retirement.
Act 18 of 1891 to apply to the books of Company..
10. The Company shall be deemed to be a bank for the purposes of the Bankers'* Books Evidence Act, 1891.
SEC 11 THE GAZETTE OF INDIA EXTRAORDINARY 5 2 of 1882.
4 of 1938.
10 of 1949.
H . Notwithstanding anything contained in any other law for the time being in force, the shares, bonds and debenturcj of the Comply shall be deemed to be.approved securities for the purposes of the Ihdian Trusts Act, 1882, the Iniuiance Act, 1938 and the Banking Regulation Act, 1949.
Shares, bonds and debentures to be deemed lo be approved (Wnj'ttfes.
12. In every Act, rule or regulation in force on the appointed day,—
(a) for the words "Industrial Reconstruction Bank of India", wherever they occur, the words "Industrial Investment Bank of India Limited" shall be substituted;
(b) for the words "Reconstruction Bank", wherever they occur, the words "Industrial Investment Bank" shall be substituted Substitution rules or regulations of company in phec of tt" Rcconstrution Bank.
62 of 1984. 13. (i) On die appointed day, the Industrial Reconstruction Bank of India Act, 1984 shall stand repealed.
Repeal and saving of Act <52 of
1984.
62 -f \9Ti.
(2) Notwithstanding the repeal of the Industrial Reconstruction Bank of India Act, 1934, - ( • ? > i h x C o c ' D o n y s h a l l , o f a r i s i n : » y b e , c o m p l y w i t h I I J C p r o v i s i o n s o f C! vy.ti VII of he Act so repealed for any of tbe purposes related to the annual accounts and audit of the Recuistructioa R^ik, (£>) the provisions of Chapter VEI of the Act so repealed will continue to be applicable in respect of the arrangements entered into by the Reconstruction Bank with an industrial concern under section 18 thereof upto the appointed day and the Company will be entitled to act upon and enforce the same as fully and effectually as if this Ordinance had not been promulgated.
CHAPTER IV AMENDMENT TO THE INDUSTRIAL RECONSTRUCTION BANK OF INDIA ACT, 1984
14. In the Industrial Reconstruction Bank of India Act, 1984 after section 4 the following section shall be inserted, namely:— Insertion of new section 4A "4A. (1) The Central Government may reduce share capital of the Reconstruction Bank by,—
(a) extinguishing or reducing the liability of any of its equity shares;
(i>) either with or without extinguishing or reducing liability on any of its equity shares, cancelling any paid up share capital which is lost, or is unrepresented by available assets; or
(c) either with or without extinguishing or reducing liability on any of its equity shares, paying of any paid up share capital which is in excess of the wants of the Reconstruction Bank.
Transitional provisions regarding adjustment of capital of the Reconstruction Bimk.
6 THE GAZmTE OF INDIA EXTRAORDINARY [PAHT II—SEC. 1 ]
(2) The Central Government may at any time, by notifica'ion in the Official Gazette, convert such number of equity shares held by it as it may decide into redeemable preference shares.
(3) The redeemable preference share* referred to in sub-section (2) shall carry such fixed rates of dividend as the Central Government may specify at the time of such conversion.".
SHANKER DAYAL SHARMA, President.
K. L. MOHANPURIA.
Secy, to -the Govt. of India.
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