Section 39: Power to give instructions to Financial Corporation on questions of policy.

The State Financial Corporations Act, 1951Central Act · Act 63 of 1951

(1) In the discharge of its functions, the Board shall be guided by such instructions on questions of policy as may be given to it by the State Government [in consultation with [and after obtaining the advice of,] the [Small Industries Bank]].

(2) If any dispute arises between the State Government and the Board as to whether a question is or is not a question of policy, the decision of the State Government shall be final.

[(2A) Nothing contained in sub-section (1) and sub-section (2) shall apply in a case where a State Government holds less than fifty-one per cent. of the equity shares in the Financial Corporation.

(2B) Notwithstanding the equity share holding of a Financial Corporation by a State Government, the State Government may advise the Financial Corporations on the matters of policy.]

(3) If the Board fails to carry out the instructions on the question of policy laid down by the State Government [under sub-section (1) of this section or the instructions given to the Board under sub-section (4) of section 37A], the State Government shall have the power to supersede the Board and appoint a new Board in its place to function until a properly constituted Board is set up, and the decision of the State Government as to the grounds for superseding the Board shall not be questioned in any court.

Where this provision sits

Act	The State Financial Corporations Act, 1951
Section	39
Marginal note	Power to give instructions to Financial Corporation on questions of policy.
Jurisdiction	Central
Status	In force as published by the source

How this provision has been amended

Taken from the footnotes printed with the provision by the source. Where a footnote names the amending instrument, it is quoted as printed.

inserted, Act 56 of 1956. . Ins. by Act 56 of 1956, s. 23 (w.e.f.1-10-1956).
inserted, Act 77 of 1972. . Inserted by Act 77 of 1972, s. 26 (w.e.f. 30-12-1972).
substituted, Act 39 of 2000. . Subs. by Act 39 of 2000, s. 28, for "Development Bank" (w.e.f. 5-9-2000).
inserted. . Ins. by s. 28, ibid. (w.e.f. 5-9-2000).
substituted, Act 56 of 1956. . Subs. by Act 56 of 1956, s. 23, for certain words (w.e.f. 1-10-1956).

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