Section 11 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984
- (1)On the vesting of the management of the undertakings of the two companies in an existing, or a new, Government company, all persons in charge of the management of the undertakings of either of the two companies immediately before such vesting shall be bound to deliver to such Government company, all assets, books of account, registers and other documents in their custody relating to the undertakings.
- (2)The Central Government may issue such directions as it may deem desirable in the circumstances of the case to the existing, or new, Government company and such Government company may also, if it is considered necessary so to do, apply to the Central Government at any time for instructions as to the manner in which the management of the undertakings of the two companies shall be conducted or in relation to any other matter arising in the course of such management.
Summary
- When the management of the undertakings vests in an existing or new Government company, anyone who was in charge of managing the undertakings immediately before that vesting must hand over all related assets and documents.
- The items that must be delivered include all assets, books of account, registers, and other documents relating to the undertakings that are in their custody.
- The Central Government has the power to issue any directions it thinks are desirable to the existing or new Government company regarding management.
- The Government company running the undertakings can apply to the Central Government at any time for instructions on how to conduct the management or on any other matter that comes up.
Practical examples
FAQ
1. Who is legally bound to deliver assets and documents under Section 11?
Anyone who was in charge of the management of the undertakings of either company immediately before the management vested in the Government company.
2. What specific items must be delivered to the Government company under Section 11?
They must deliver all assets, books of account, registers, and other documents in their custody that relate to the undertakings.
3. Can the Government company seek help from the Central Government if it faces difficulties in managing the undertakings?
Yes. The Government company can apply to the Central Government at any time for instructions on how to conduct the management or on any other matter that comes up during management.
4. Does the Central Government have the authority to proactively supervise or guide the Government company?
Yes. The Central Government has the power to issue any directions it deems desirable to the existing or new Government company regarding the management of the undertakings.
Test yourself
Q1.Under Section 11 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, who is legally obligated to deliver the assets, books of account, and registers to the Government company?
Q2.Under Section 11 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, what types of records and materials must be delivered to the Government company upon vesting?
Q3.Under Section 11 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, what recourse does the specified Government company have if it needs guidance on how to run the newly vested undertakings?
Q4.Under Section 11 of The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 1984, what role does the Central Government play in directing the management after it has vested in a Government company?