1[(1) The State Government may provide to a Corporation
established by that Government any capital that may be required by the Corporation for the purpose of
carrying on its undertaking or for purposes connected therewith on such terms and conditions, not
inconsistent with the provisions of this Act, as that Government may determine.]
2[(2) The Corporation may, whether or not any capital is provided to it under sub-section (1), raise by the issue of shares such capital (hereafter in this section referred to as the authorised share capital) as may be authorised in this behalf by the State Government:
Provided that where any capital is provided to the Corporation under sub-section (1), no capital may be raised under this sub-section without the previous approval of the Central Government.
(2A) Any capital raised under sub-section (2) with the previous approval of the Central Government may be,--
(a) in addition to the capital provided to the Corporation under sub-section (1);
(b) subscribed to by the Central Government or the State Government, as the case may be, by converting the whole or any part of the capital provided [whether before or after the commencement of the Road Transport Corporations (Amendment) Act, 1982] to the Corporation by that Government under sub-section (1).]
(3) The 3[authorised share capital] of the Corporation shall be divided into such number of shares as the State Government may determine; and the number of shares which shall be subscribed by the State Government, 4*** and other parties (including persons whose undertakings have been acquired by the Corporation) shall also be determined by the State Government 4***.
(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 the rules 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 under sub-section (4) in such manner as may be prescribed.
2[(2) The Corporation may, whether or not any capital is provided to it under sub-section (1), raise by the issue of shares such capital (hereafter in this section referred to as the authorised share capital) as may be authorised in this behalf by the State Government:
Provided that where any capital is provided to the Corporation under sub-section (1), no capital may be raised under this sub-section without the previous approval of the Central Government.
(2A) Any capital raised under sub-section (2) with the previous approval of the Central Government may be,--
(a) in addition to the capital provided to the Corporation under sub-section (1);
(b) subscribed to by the Central Government or the State Government, as the case may be, by converting the whole or any part of the capital provided [whether before or after the commencement of the Road Transport Corporations (Amendment) Act, 1982] to the Corporation by that Government under sub-section (1).]
(3) The 3[authorised share capital] of the Corporation shall be divided into such number of shares as the State Government may determine; and the number of shares which shall be subscribed by the State Government, 4*** and other parties (including persons whose undertakings have been acquired by the Corporation) shall also be determined by the State Government 4***.
(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 the rules 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 under sub-section (4) in such manner as may be prescribed.
1. Subs. by s. 7 (a) and the First Schedule, ibid., for sub-section (1) (w.e.f. 13-11
2. Subs. by Act 63 of 1982, s. 12, for sub-section (2) (w.e.f. 13-11-1982).
3. Subs. by s. 12, ibid., for "authorised capital" (w.e.f. 13-11-1982).
4. Omitted by Act 71 of 1971, s. 7(a) and the First Schedule (w.e.f. 3-9-1971).