(1) The Central Government may, by notification in the Official Gazette and after consultation with the Government of a State, establish a Food Corporation for that State under such name as may be specified in the notification.
(2) A State Food Corporation established under sub-section (1) shall be a body corporate by the name notified under that sub-section, having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and may, by the said name sue and be sued.
(3) The head office of a State Food Corporation shall be at such place within the State as may notified by the Central Government in the Official Gazette.
(4) Subject to the provisions of this Act a State Food Corporation may perform such of the functions of the Food Corporation of India as that Corporation may delegate to it.
(1) The Capital of a State Food Corporation shall be such sum not exceeding ten crores of rupees as the Central Government may, after consultation with the Food Corporation of India, fix.
(2) The Central Government may, after such consultation, from time to time, increase the capital of the State Food Corporation to such extent and in such manner as that Government may determine.
(3) Such capital shall be provided-
(a) By the Central Government after due appropriation made by Parliament by law for the purpose, and
(b) By the Food Corporation of India, in such proportion and subject to such terms and conditions as may be determined by the Central Government.
(1) the general superintendence, direction and management of the affairs and business of a State Food Corporation shall vest in a board of directors which shall consist of a Chairman, a General Manager and not more than ten other members, all of whom shall be appointed by the Food Corporation of India after consultation with the Central Government and the State Government.
(2) The General Manager shall-
(a) Exercise such powers and perform such duties as the board of directors may entrust or delegate to him; and
(b) Receive such salary and allowances and be governed by such terms and conditions of service as the board of directors may, in consultation with the Food Corporation of India, fix.
(3) The board of directors, in discharging its functions, shall act on business principles having regard to the interests of the producer and consumer and shall be guided by such instructions on questions of policy as may be given to it by the Food Corporation of India.
(4) If any doubt arises as to whether a question is or is not a question of policy, the matter shall be referred to the Central Government whose decision thereon shall be final.
(5) The members of the board of directors, other than the General Manager, shall be entitled to receive by way of remuneration or fees such sums as may be prescribed:
Provided that no official member shall be entitled to receive any remuneration other than any allowances admissible to him under the rules regulating his conditions of service.
(6) The term of office of and the manner of filling casual vacancies among, the members of the Board of directors shall be such as may be prescribed.
A person shall be disqualified for being appointed as, and for being, a member of the board of directors of a State Food Corporation, -
(a) If he is, or at any time has been adjudicated insolvent or has suspended payment of his debts or has compounded with his creditors; or
(b) If he is of unsound mind and stands so declared by a competent court; or
(c) If he is or has been convicted of any offence which in the opinion of the Central Government involves moral turpitude; or
(d) If he has been removed or dismissed from the service of the Government or a Corporation owned or controlled by the Government; or
(e) Except in the case of the chairman or the General Manager, if he is a salaried official of the Food Corporation of India or a State Food Corporation.
(1) The Food Corporation of India may, at any time, after consultation with the State Food Corporation, remove the General Manager from office after giving him a reasonable opportunity of showing cause against the proposed removal.
(2) The board of directors of a State Food Corporation may remove from office any member of that board who-
(a) Is or has become subject to any of the disqualifications mentioned in section 20, or
(b) Is absent without leave of the board of directors from more than three consecutive meetings thereof without cause sufficient, in the opinion of the board, to exonerate his absence.
(3) A member of such board may resign his office by giving notice thereof in writing to the Food Corporation of India and on such resignation being accepted, he shall be deemed to have vacated his office.
(1) The board of directors of a State Food Corporation shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at meetings) as may be provided by regulations made by that Corporation under this Act.
(2) The Chairman of the board of directors or, if for any reason he is unable to attend any meeting, any other member of the board elected by the members of the board present at the meeting, shall preside at the meeting.
(3) All questions which come up before any meeting of the board of directors shall be decided by a majority of the votes of the members present and voting, and in the event of an equality of votes, the chairman or in his absence, the person presiding shall have and exercise a second or casting vote.
(1) A State Food Corporation may appoint such officers and other employees as it considers necessary for the efficient performance of its functions.
(2) Every person employed by a State Food Corporation under this Act shall be subject to such conditions of service and shall be entitled to such remuneration as may be determined by regulations made by the Corporation under this Act.
(1) The board of directors of a State Food corporation may constitute an Executive Committee which shall consist of-
(a) The Chairman of the board of directors;
(b) The General Manager; and
(c) Three other members of the board of directors, of whom one shall be a non-official.
(2) The Chairman of the Board of Directors shall be the Chairman of the Executive Committee.
(3) Subject to the general control, direction and superintendence of the board of directors, the Executive Committee shall be competent to deal with any matter within the competence of the State Food Corporation.
(4) The board of directors may constitute such other committees, whether consisting wholly of members of the board or wholly of other persons or partly of such members and partly of other persons as it thinks fit for, such purposes as it may decide.
(5) A committee constituted under this section, shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at meetings) as may be provided by regulations made by the State Food Corporation under this Act.
(6) The members of a committee (other than the directors of the board) shall be paid by the State Food Corporation such fees and allowances as may be fixed by it by regulations made under this Act, for attending the meeting of the committee and for attending to any other work of that Corporation.
A member of the board of directors of a State food Corporation or a committee thereof who has any direct or indirect pecuniary interest in any matter coming up for consideration at a meeting of the board of directors or committee thereof, shall as soon as possible after relevant circumstances have come to his knowledge, disclose the nature of his interest at such meeting and the disclosure shall be recorded in the minutes of the board or the committee, as the case may be, and the member shall not take any part in any deliberation or decision of the board or the committee with respect to that matter.
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