(1) On the appointed day, all the shares of the Company, except those held by the financial institutions like the State Industrial Development Corporation of Maharashtra, the Maharashtra State Financial Corporation, the State Bank of India or the Life Insurance Corporation of India shall, by virtue of this Act, stand transferred to, and vest in, the State Government.
(2) The State Government shall be deemed, on and from the appointed day, to have been registered in the register of members of the Company as the holder of each share which stands transferred to, and vested in it, by virtue of the provisions of sub-section (1).
(3) All the shares which have vested in the State Government under sub-section (1), shall, by force of such vesting, be freed and discharged of all trusts, liabilities, obligations, mortgages, charges, liens and other encumbrances affecting them, and any attachment, injunction or any decree or order of the Court, tribunal or other authority restricting the use of such shares in any manner, shall be deemed to have been withdrawn.
(4) For the removal of doubts, it is hereby declared that the provisions of sub-sections (1) and (2) shall not be deemed to affect-
(a) any right of the Company subsisting, immediately before the appointed day, against any shareholder to recover from such shareholder any sum of money on the ground that the shareholder has not paid or credited to the Company the whole or any part of the value of the shares held by him, or on any other ground whatsoever, or
(b) any right of the shareholder subsisting, immediately before the appointed day, against the Company to receive any dividend or other payment due from the Company.