 |
 |
|
|
|
|
| search a lawyer |
|
|
| ACTS, STATUTES |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Home > Indian Bare Acts > THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT,1980 > CHAPTER V MISCELLANEOUS |
|
| INDIAN BARE ACTS |
|
| Search Alphabatically : |
|
|
| Search Chronologically : |
|
|
|
|
| THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT,1980 |
|
Title : THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT,1980
Year : 1980
Act :
CHAPTER V
MISCELLANEOUS
10.Closure of accounts and disposal of profits.
10. Closure of accounts and disposal of profits. (1) Every corresponding new bank shall cause its books to be closed and balanced on the 31st day of December 4*or such other date in each year as the
Central Government may, by notification in the Official Gazette, specity and shall appoint, with the previous approval of the Reserve
Bank, auditors for the audit of its accounts.
5*[Provided that with a view to facilitating the transition from one period of accounting to another period of accounting under this sub-section, the Central Government may, by order published in the
Official Gazette, make such provisions as it considers necessary or expedient for the closing and balancing of, or for other matters relating to, the books in respect of the concerned years.
(2) Every auditor of a corresponding new bank shall be a person who is qualified to act as an auditor of a company under section 226.of the Companies Act, 1956 (1 of 1956) and shall receive such remuneration as the Reserve Bank may fix in consultation with the
Central Government.
(3) Every auditor shall be supplied with a copy of the annual balance-sheet and profit and loss account and a list of all books kept by the corresponding new bank, and it shall be the duty of the auditor to examine the balance-sheet and profit and loss account with the accounts and vouchers relating thereto, and in the performance of his duties, the auditor--
(a) shall have, at all reasonable times, access to the books, accounts and other documents of the corresponding new bank;
(b) may, at the expense of the corresponding new bank, employ accountants or other persons to assist him in investigating such accounts; and
(c) may, in relation to such accounts, examine the Custodian or any officer or other employee of the corresponding new bank.
(4) Every auditor of a corresponding new bank shall make a report to the Central Government upon the annual balance-sheet and accounts and in every such report shall state--
(a) whether, in his opinion, the balance-sheet is a full and fair balance-sheet containing all the necessary particulars and is properly drawn up so as to exhibit a true and fair view of the affairs of the corresponding new bank, and in case he had called for any explanation or information, whether it has been given and whether it is satisfactory;
(b) whether or not the transactions of the corresponding new bank, which have come to his notice, have been within the powers of that bank;
(c) whether or not the returns received from the offices and branches of the corresponding new bank have been found adequate for the purpose of his audit;
1. Ins. by Act 1 of 1984, s. 72 (w.e.f. 15-3-1984).
2. Re-lettered by s. 72, ibid. (w.e.f. 15-3-1984).
3. Numbered by Act 66 of 1988, s. 36 (w.e.f. 30-12-1988).
4. Subs. by s. 37, ibid. (w.e.f. 30-12-1988).
5. Ins. by s. 37, ibid. (w.e.f. 30-12-1988).
182.(d) whether the profit and loss account shows a true balance of profit or loss for the period covered by such account; and
(e) any other matter which he considers should be brought to the notice of the Central Government.
1*[Explanation I.-- For the purposes of this Act,--
(a) the balance-sheet shall not be treated as not disclosing a true and fair view of the affairs of the corresponding new bank, and
(b) the profit and loss account shall not be treated as not showing a true balance of profit or loss for the period covered by such account,
merely by reason of the fact that the balance-sheet or, as the case may be, the profit and loss account, does not disclose any matters which are by the provisions of the Banking Regulation Act, 1949, read with the relevant provisions of this Act or any other Act, not required to be disclosed.
Explanation II.-- For the purposes of this Act, the accounts of the corresponding new bank shall not be deemed as having not been properly drawn up on the ground merely that they do not disclose certain matters if--
(i) those matters are such as the corresponding new bank is, by virtue of any provision contained in the Banking Regulation
Act, 1949, read with the relevant provisions of this Act, or any other Act, not required to discloses and
(ii) the provisions referred to in clause (i) are specified in the balance-sheet and profit and loss account of the corres-
ponding new bank or in the auditors report.
(5) The report of the auditor shall be verified, signed and transmitted to the Central Government.
(6) The auditor shall also forward a copy of the audit report to the corresponding new bank and to the Reserve Bank.
(7) After making provision for bad and doubtful debts, depreciation in assets, contributions to staff and superannuation funds and all other matters for which provision is necessary under any law, or which are usually provided for by banking companies, a corresponding new bank 2*may, out of its net profits, declare a dividend and retain the surplus, if any.
1*(7A) Every corresponding new bank shall furnish to the Central
Government 2*[and to the Reserve Bank] the annual balance-sheet, the profit and loss account, and the auditors report and a report by its
Board of directors on the working and activities of the bank during the period covered by the accounts.]
(8) The Central Government shall cause every auditors report and report on the working and activities of each corresponding new bank to be laid 1*as soon as may be after they are received before each House of Parliament3*.
1*[(9) Without prejudice to the foregoing provisions, the Central
Government may, at any time, appoint such numberr of auditors as it thinks fit to examine and report on the accounts of a corresponding new bank and the auditors so appointed shall have all the rights, privileges and authority in relation to the audit of the accounts of the corresponding new bank which an auditor appointed by the corres-
ponding new bank has under this section.
4*[10A. Annual general meeting (1) A general meeting. (in thisAct referred to as an annual general meeting) of every corresponding new bank which has issued capital under clause (c) of sub-section (2B) of section 3 shall be held at the place of the head office of the bank in each year at such time as shall from time to time be specified by the
Board of Directors:
Provided that such annual general meeting shall be held before the expiry of six weeks from the date on which the balance-sheet, together with the profit and loss account and auditors report is, under sub-section (7A) of section 10, forwarded to the Central Govern-
ment or to the Reserve Bank, whichever date is earlier.
(2) The shareholders present at an annual general meeting shall be entitled to discuss the balance-sheet and the profit and loss account of the corresponding new bank made up to the previous 31st day of March, the report of the Board of Directors on the working and activities of the corresponding new bank for the period covered by the accounts and the auditors report on the balance-sheet and accounts.
11.Corresponding new bank deemed to be an Indian company.
11. Corresponding new bank deemed to be an Indian company. For the purposes of the Income-tax Act, 1961 (43 of 1961), every corresponding new bank shall be deemed to be an Indian company and a company in which the public are substantially interested.
12.Vacation of office of Chairman, etc.
12. Vacation of office of Chairman, etc. (1) Every person holding office, immediately before the commencement of this Act, as Chairman of an existing bank shall, if he becomes Custodian of the corresponding new bank, be deemed, on such commencement, to have vacated office as such Chairman.
(2) Save as otherwise provided in sub-section (1), every officer or other employee of an existing bank shall become, on the commencement of this Act, an officer or other employee, as the case may be, of the corresponding new bank and shall hold his office or service in that bank on the same terms and conditions and with the same rights to pension, gratuity and other matters as would have been admissible to him if the undertaking of the existing bank had not been transferred to and vested in the corresponding new bank and continue to do so unless and until his employment in the corresponding new bank is terminated or until his remuneration, terms or conditions are duly altered by the corresponding new bank.
(3) For the persons who immediately before the commencement of this Act were the trustees for any pension, provident, gratuity or other like fund constituted for the officers or other employees of an existing bank, there shall be substituted as trustees such persons as the Central Government may, by general or special order, specify.
(4) Notwithstanding anything contained in the Industrial Disputes
Act, 1947 (14 of 1947), or in any other law for the time being in force, the transfer of the services of any officer or other employee from an existing bank to a corresponding new bank shall not entitle such officer or other employee to any compensation under this Act or any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority.
5*12A. Bonus. (1) No officer or other employee [other than an employee within the meaning of clause (13) of section 2 of the Payment of Bonus Act, 1965 (21 of 1965)], of a corresponding new bank shall be entitled to be paid any bonus.
(2) No employee of a corresponding new bank, being an employee within the meaning of clause (13) of section 2 of the Payment of Bonus
Act, 1965 (21 of 1965), shall be entitled to be paid any bonus except in accordance with the provisions of that Act.
(3) The provisions of this section shall have effect notwith-
standing any judgment, decree or order of any court, tribunal or other authority and notwithstanding anything contained in any other provi-
sion of this Act or in the Industrial Disputes Act, 1947 (14 of 1947), or any other law for the time being in force or any practice, usage or custom or any contract, agreement, settlement, award or other instrument.
1. Ins. by Act 1 of 1984, s. 73 (w.e.f. 15-2-1984).
2. Subs by Act 37 of 1995, s. 15 (w.e.f. 15-7-1994).
3. Omitted by Act 81 of 1985, s. 15 (w.e.f. 1-5-1986).
4. Ins. by Act 301 of 1995, s. 16, (w.e.f. 15-7-1994).
5. Ins. by Act 64 of 1984, s. 5.183.13.Obligations as to fidelity and secrecy.
13. Obligations as to fidelity and secrecy. (1) Every corresponding new bank shall observe, except as otherwise required by law, the practices and usages customary among bankers, and, in particular, it shall not divulge any information relating to or to the affairs of its constituents except in circumstances in which it is, in accordance with law or practices and usages customary among bankers, necessary or appropriate for the corresponding new bank to divulge such information.
(2) Every director, member of a local board or a committee, or auditor, adviser, officer or other employee of a corresponding new bank shall, before entering upon his duties, make a declaration of fidelity and secrecy in the form set out in the Third Schedule.
(3) Every Custodian of a corresponding new bank shall, as soon as possible, make a declaration of fidelity and secrecy in the form set out in the Third Schedule.
14.Custodian to be public servant.
14. Custodian to be public servant. Every Custodian of a corresponding new bank shall be deemed to be a public servant for the purposes of Chapter IX of the Indian Penal Code (45 of 1860).
15.Certain defects not to invalidate acts or proceedings.
15. Certain defects not to invalidate acts or proceedings. (1)
All acts done by the Custodian, acting in good faith, shall, notwithstanding any defect in his appointment or in the procedure, be valid.
(2) No act or proceeding of any Board of Directors or a local board or committee of a corresponding new bank shall be invalid merely on the ground of the existence of any vacancy in, or defect in the constitution of, such board or committee, as the case may be.
(3) All acts done by a person acting in good faith as a director or member of a local board or committee of a corresponding new bank shall be valid, notwithstanding that it may afterwards be discovered that his appointment was invalid by reason of any defect or disqualification or had terminated by virtue of any provision contained in any law for the time being in force:
Provided that nothing in this section shall be deemed to give validity to any act by a director or member of a local board or committee of a corresponding new bank after his appointment has been shown to the corresponding new bank to be invalid or to have terminated.
16.Indemnity.
16. Indemnity. (1) Every Custodian of a corresponding new bank and every officer of the Central Government or of the Reserve Bank and every officer or other employee of a corresponding new bank, shall be indemnified by such bank against all losses and expenses incurred by him in or in relation to the discharge of his duties except such as have been caused by his own wilful act or default.
(2) A director or member of a local board or committee of a corresponding new bank shall not be responsible for any loss or expense caused to such bank by the insufficiency or deficiency of the value of, or title to, any property or security acquired or taken on behalf of the corresponding new bank, or by the insolvency or wrongful act of any customer or debtor, or by anything done in or in relation to the execution of the duties of his office, unless such loss, expense, insufficiency or deficiency was due to any wilful act or default on the part of such director or member.
1*16A. Arrangement with corresponding new bank on appointment of direcctors to prevail. (1) Where any arrangement entered into by a corresponding new bank with a company provides for the appointment by the corresponding new bank of one or more directors of such company, such provision and any appointment of directors made in pursu- ance thereof shall be valid and effective notwithstanding anything to the contrary contained in the Companies Act, 1956 (1 of 1956), or in any other law for the time being in force or in the memorandum, articles of asso- ciation or any other insturment relating to the company, and any provision regarding share qualification, age limit, number of direc- torships, removal from office of directors and such like conditions contained in any such law or instrument aforesaid, shall not apply to any director appointed by the corresponding new bank in pursuance of the arrangement as aforesaid.
(2) Any director appointed as aforesaid shall--
(a) hold office during the pleasure of the corresponding new bank and may be removed or substituted by any person by order in writing of the ccorresponding new bank;
(b) not incur any obligation or liability by reason only of his being a director or for anything done or omitted to be done in good faith in the discharge of his duties as a director or anthing in relation thereto;
(c) not be liable to retirement by rotation and shall not be taken into account for computing the number of directors liable to such retirement.
17.Construction of references to existing banks.
17. Construction of references to existing banks. Any reference to any existing bank in any law, other than this Act, or in any contract or other instrument shall, in so far as it relates to the undertaking which has been transferred by section 4, be construed as a reference to the corresponding new bank.
1. Ins. by Act 1 of 1984, s. 74 (w.e.f. 15-2-1984).
184.18.Dissolution.
18. Dissolution. No provision of law relating to winding up of corporations shall apply to a corresponding new bank and no corresponding new bank shall be placed in liquidation save by order of the Central Government and in such manner as it may direct.
19.Power to make regulations.
19. Power to make regulations. (1) The Board of Directors of a corresponding new bank may, after consultation with the Reserve Bank and with the previous sanction of the Central Government, 1*[by notification in the Official Gazette, make regulations, not inconsistent with the the provisions of this Act or any scheme made thereunder, to provide for all matters for which provision is expedient for the purpose of giving effect to the provisions of this
Act.
(2) In particular, and without prejudice to the generality of the foregoing power, the regulations may provide for all or any of the following matters, namely:--
(a) the powers, functions and duties of local boards and restrictions, conditions or limitations, if any, subject to which they may be exercised or performed, the formation and constitution of local committees and committees of local boards
(including the number of members of any such committee), the powers, functions and duties of such committees, the holding of meetings of local committees and committees of local boards and the conduct of business thereat;
(b) the manner in which the business of the local boards shall be transacted and the procedure in connection therewith;
2*[(ba) the nature of shares of the corresponding new bank, the manner in which and the conditions subject to which shares may be held and transferred and generally all matters ralating to the rights and duties of Shareholders;
(bb) the maintenance of register, and the particulars to be entered in the register in addition to those specified in sub-
section (2F) of section 3, the safeguards to be observed in the maintenance of register on computer floppies or diskettes, inspecction and closure of the register and all other matters connected therewith;
(bc) the manner in which general meetings shall be convened, the procedure to be followed thereat and the manner in which voting rights may be exercised;
(bd) the holding of meetings of shareholders and the busi-
ness to be transacted thereat;
(be) the manner in which notices may be served on hehalf of the corresponding new bank upon shareholders or other persons;
(bf) the manner in which the directors nominated under clause (h) of sub-section (3) of section 9 shall retire.
(c) the delegation of powers and functions of the Board of
Directors of a corresponding new bank to the general manager, director, officer or other employee of that bank;
(d) the conditions or limitations subject to which the corresponding new bank may appoint advisers, officers or other employees and fix their remuneration and other terms and conditions of service;
(e) the duties and conduct of advisers, officers or other employees of the corresponding new bank;
(f) the establishment and maintenance of superannuation, pension, provident or other funds for the benefit of officers or other employees of the corresponding new bank or of the dependants of such officers or other employees and the granting of superannuation allowances, annuities and pensions payable out of such funds;
(g) the conduct and defence of legal proceedings by or against the corresponding new bank and the manner of signing pleadings;
(h) the provision of a seal for the corresponding new bank and the manner and effect of its use;
(i) the form and manner in which contracts binding on the corresponding new bank may be executed;
(j) the conditions and the requirements subject to which loans or advances may be made or bills may be discounted or purchased by the corresponding new bank;
(k) the persons or authorities who shall administer any pension, provident or other fund constituted for the benefit of officers or other employees of the corresponding new bank or their dependants;
(l) the preparation and submission of statements of programmes of activities and financial statements of the corresponding new bank and the period for which and the time within which such statements and estimates are to be prepared and submitted; and
1. Ins. by Act 66 of 1988, s. 38 (w.e.f. 30-12-1988).
2. Ins. by Act 37 of 1984, s. 17 (w.e.f. 15-7-1994).
185.(m) generally for the efficient conduct of the affairs of the corresponding new bank.
(3) Until any regulation is made under sub-section (1), the articles of association of the existing bank and every regulation, rule, bye-law or order made by the existing bank in force immediately before the commencement of this Act shall be deemed to be the regulations made under sub-section (1) and shall have effect accordingly and any reference therein to any authority of the existing bank shall be deemed to be a reference to the corresponding authority of the corresponding new bank and until any such corresponding authority is constituted under this Act shall be deemed to refer to the Custodian.
1*(4) Every regulation shall, as soon as may be after it is made under this Act by the Board of directors of a corresponding new bank, be forwarded to the Central Government and that Government shall cause a copy of the same to be laid before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more succcessive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation or both Houses agree that the reg-
ulation whould not be made, the regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation.
2* * * * *
1. Ins. by Act 1 of 1984, s. 75 (w.e.f. 15-2-1984).
2. Repealed by Act 19 of 1988, s. 2 Sch. I.
186.21.Repeal and saving.
21. Repeal and saving. (1) The Banking Companies (Acquisition and
Transfer of Undertakings) Ordinance, 1980 (3 of 1980), is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken, including any order made, notification issued or direction given, under the said Ordinance shall be deemed to have been done, taken, made, issued or given, as the case may be, under the corresponding provisions of this Act.
Last updated on February, 2008
|
|
|
|
|
|
|
|
| Property / Real Estate |
Legal verified real estate. Choose from our list of properties with clear title.
Search property |
|
|
|
|
|
|
|
|
