( 51 ) THE Industrial Finance Corporation is a body corporate. The authorised capital of the Corporation shall be ten crores of rupees divided into twenty thousand fully paid up shares of five thousand rupees each Ten thousand shares of the total value of five crores of rupees shall be issued in the first instance. The remaining shares may be issued with the sanction of the Central Government. Of the capital issued in the first instance, the Central Government and the Reserve Bank of India shall each subscribe for two thousand shares. Scheduled banks may subscribe for two thousand five hundred shares. Insurance companies, investment trusts and other like financial institutions for two thousand five hundred shares and cooperative banks for one thousand shares of the Corporation. It is significant that ordinary citizens cannot be shareholders. All shares of the Corporation held by the Central Government and the Reserve Bank of India shall stand transferred to and vest in the Development Bank. As compensation therefor, the Development Bank shall pay to the Central Government and to the Reserve Bank respectively the face value of the shares held by that Government and by that Bank. The shares of the Corporation shall be guaranteed by the Central Government as to the re-payment of the principal and the payment of the annual dividend at such minimum rate as may be fixed by the Central Government by notification. The Development Bank means the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964.

( 52 ) THE Chairman of the Corporation shall 'be appointed by the Central Government. Four Directors are nominated by the Development Bank; two directors are nominated by the Central Government: two directors are elected by Scheduled Banks; two directors are elected by shareholders of the Corporation other than the Development Bank, Scheduled Banks and the co-operative banks; two directors are elected by co-operative banks. The Central Government may remove the Chairman.

( 53 ) WHERE any industrial concern which is under a liability to the Corporation makes any default in repayment or otherwise fails to comply with the terms of the agreement with the Corporation, the Corporation shall have the right to take over the management or possession or both of the concern as well as the right to transfer by way of lease or sale and realise the property, pledged, mortgaged, hypothecated or assigned to the Corporation.

( 54 ) THE Corporation shall furnish to the Central Government statement of assets and liabilities at the close of the year together with profit and loss account and a report of the "working of the Corporation and the report shall be published in the Official Gazettee and shall be laid before Parliament. No provision of law relating to the winding up of companies or corporations shall apply to the Corporation. The Corporation shall not be placed in liquidation save by order of the Central Government.

( 55 ) THE superintendence and the affairs of the Corporation shall be entrusted to a Board. In the discharge of functions, the Board shall be guided by the Development Bank. If any 'dispute arises between the Development Bank and the Board, the dispute shall be referred to the Central Government whose decision shall be final. The Central 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.

( 56 ) THE Corporation may invest funds in the securities of the Central Government or of any State Government and may with the approval of the Central Government contribute to the initial capital of the Unit Trust of India. The Corporation may also subscribe to or purchase the shares of any financial institution which the Central Government in consultation with the Development Bank may notify in this behalf. The Corporation may issue and sell bonds and debentures. Bond and debenture of the Corporation shal