(1) If at any time it appears to the Central Government that the purpose of the notified order appointing the directors has been fulfilled or that for any other reason it is unnecessary that the notified order should remain in force, the Central Government may, by notified order, cancel the appointment of directors made under this Ordinance.
(2) On the cancellation of any such appointment as is referred to in sub-section (1), the Central Government may—
(a) direct that all the property, effects and actionable claims of the railway company shall revest in the persons in whom they were vested before the issue of the notified order under section 3; or
(b) reconstitute by fresh appointment a new body of persons to take charge of the management and administration of the whole affairs of the railway company; whether as directors or managers or in any other capacity:
Provided that no such fresh appointment shall be made except in pursuance of a resolution passed by the bhareholders of the railway company at a meeting called for the purpose by the directors appointed under section 3.
(3) The Central Government may, at any time before the issue of the notified order under sub-section (1), take such action as may be necessary under clause (b) of sub-section (2) for the purpose of making any fresh appointments.
13. Application of the Companies Act— (1) Notwithstanding anything contained in the Companies Act or in the memorandum or articles of association of the railway company, but subject to the other provisions contained in this Ordinance,—
(a) it shall not be lawful for the shareholders of the railway company or any other person to nominate or appoint any person to be a director of the railway company;
(b) no resolution passed at any meeting of the shareholders of the railway company shall be given effect to unless approved by the Central Government;
(c) no proceeding for the winding-up of the railway company or for the appointment of a receiver in respect thereof shall lie in any court, unless by or with the sanction of the Central Government.
(2) Subject to the provisions contained in sub-section (1J and to the other provisions contained in this Ordinance and subject to such exceptions, restrictions and limitations as the Central Government may by notified order specify, the Companies Act shall continue to apply to the railway company in the same manner as it applied thereto before the issue of the notified order under section 3.
228 THE QAZETTE OF INDIA EXTliAOEDINABY [PART II