The shares of a Corporation shall be guaranteed by the State Government as to the payment of the principal and the payment of the annual dividend at such minimum rate as may be fixed by the State Government by notification published in the Official Gazette at the time of issuing the shares.
1. Subs. by Act 71 of 1971, s. 7(a) and the First Schedule, for “The Central Government in consultation with the State Government” (w.e.f. 13-11-1971).
2. Subs. by s. 7 (a) and the First Schedule, ibid., for sub-section (1) (w.e.f. 13-11
3. Subs. by Act 63 of 1982, s. 12, for sub-section (2) (w.e.f. 13-11-1982).
4. Subs. by s. 12, ibid., for “authorised capital” (w.e.f. 13-11-1982).
5. Omitted by Act 71 of 1971, s. 7(a) and the First Schedule (w.e.f. 3-9-1971).
6. Ins. by Act 63 of 1982, s. 16 and the Schedule (w.e.f. 13-11-1982).
13 1 [26. Borrowing powers.—A Corporation may, with the previous approval of the State Government, borrow money for the purpose of raising its working capital or meeting any expenditure of a capital nature in the open market or from a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), a State Finance Corporation, established under section 3 of the State Financial Corporations Act, 1951 (63 of 1951), the Industrial Finance Corporation of India, established under section 3 of the Industrial Finance Corporation Act, 1948 (15 of 1948), the Industrial Development Bank of India, established under section 3 of the Industrial Development Bank of India Act, 1964 (18 of 1964), the Life Insurance Corporation of India, established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956), or any other financial institution providing credit which is subject to the control of the Reserve Bank of India.]