(1) The State Government may provide to the Corporation any capital that may be required by it for the purpose of carrying on its undertakings or for purposes connected therewith on such terms and conditions not inconsistent with the provisions of this Act as the State Government may determine.
Corporation to act on business principles.
Capital of the Corporation.
I of
1894.
The Wes Bengal Development Corporation Act, 1954. .5 XIV of 1955.]
• (Sections 20-23.)
(2) The Corporation may supplement its capital by the issue of shares when so authorised by the State Government.
(3) The authorised capital of the Corporation shall be divided into such number of shares as the State Government may determine, and the number of shares which may be subscribed by tie State Government and other parties shall also be determined by the State Government;
Provided that the value of the shares to be subscribed by the State Government shall not be less than fifty-one per cent. of the authorised capital.
(4) The allotment of shares to other parties mentioned in sub-section (3) shall be made by the Corporation in such manner as may be prescribed.
(5) The shares of the Corporation shall not be transferable except in accordance with such rules as may be made under this Act.
(6) The Corporation may at any time, with the previous approval of the State Government, redeem the shares issued to the other parties in such manner as may be prescribed.
20. If after the issue of shares under sub-section (2) of section 19, the Corporation requires any further capital, the Corporation may, with the previous sanction of the State Government, raise such additional capital by the issue of new shares and the provisions of sub-sections (3), (4), (5) and (6) of section 19 shall apply mutatis mutandis to such shares.
21. The shares of the Corporation shall be guaranteed by the State Government as to the payment of the principal and as to the payment of annual dividend at such rate not being less than five per cent. per annum or more than seven per cent. per annum, as may be fixed by the State Government by notification published in the Official Gazette at the time of issuing the shares.