(1) When any municipality including area comprising rural area or a part thereof, if any, is declared and constituted a Corporation under sections 3 and 4 of this Act, the entire officers and employees serving in municipality including area comprising rural area or a part thereof, if any, on a post shall be deemed to be transferred to the Corporation on the existing terms of service and integrated into the corresponding municipal service.
(2) The Corporation may recruit additional staff where necessary subject to the conditions as may be laid down by the Government.
(3) In making appointment to any post referred to in this section, the appointing authority shall follow the instructions issued by the Government from time to time in relation to reservation of appointment or post for Scheduled Castes, Scheduled Tribes, Backward Classes and other category of persons.