Section 44 of The Road Transport Corporations Act, 1950
Power to make rules.
- (1)The State Government may, by notification in the Official Gazette, make rules to give effect to the provisions of this Act.
- (2)In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-- 1[(a) the conditions and manner of appointment of Directors of a Corporation, the representation in the Board of the Central and State Governments, and where shares are issued to other parties under sub-section (3) of section 23 of such shareholders and generally all matters relating to the constitution of the Board;] 2[(b) remuneration, allowances or fees paid to the Directors of the Corporation or other persons associated with the Board under section 10;]
- (c)the term of office of, the manner of filling casual vacancies among 3[Directors] of the Corporation;
- (d)the number of 3[Directors] necessary to constitute a quorum at a meeting of the 4[Board];
- (e)the conditions of appointment and service and the scales of pay of the 5[Managing Director, the Chief Accounts Officer, the Financial Adviser or, as the case may be, the Chief Accounts Officer-cum-Financial Adviser] of the Corporation;
- (f)the number and term of office of, the allowances to be paid to, the procedure to be followed by, and the manner of filling casual vacancies among, members of an Advisory Council; 6[(ff) the procedure in accordance with which any stores may be declared obsolete under sub-section (2) of section 19;]
- (g)the manner in which the shares of the Corporation shall be allotted, transferred or redeemed;
- (h)the manner in which the net profits of the Corporation shall be utilised;
- (i)the date by which, and the form in which, the budget shall be prepared and submitted in each year under sub-section (1) of section 32; 7[(j) the form in which the annual statement of accounts shall be prepared;] 8* * * * *
- (l)the form in which the returns, statistics or reports shall be submitted under section 35;
- (m)the procedure to be followed by an arbitral Tribunal under section 40; 9[(mm) the service of notices and orders under this Act;]
- (n)any other matter which has to be, or may be, prescribed.
Summary
- The State Government has the power to make rules to help carry out the goals of the Road Transport Corporations Act, 1950.
- These rules are published in the Official Gazette and can define how Directors are appointed to the Board.
- The government uses these rules to decide the pay, fees, and travel allowances for Directors and others helping the Board.
- Rules also set the specific working conditions and salary levels for high ranking officers like the Managing Director.
- The State Government uses Section 44 to determine the deadlines and the exact form used for the annual budget and financial reports.
- It handles details about how the corporation issues and manages its shares and how it spends its final profits.
Practical examples
FAQ
1. Where does the State Government publish rules made under Section 44 of the Road Transport Corporations Act, 1950?
All rules created by the State Government under Section 44 of the Road Transport Corporations Act, 1950, must be published in the Official Gazette.
2. Can Section 44 of the 1950 Road Transport Act be used to set the quorum for a Board meeting?
Yes, Section 44 of the 1950 Road Transport Act allows the State Government to make rules regarding the number of Directors needed for a meeting to be valid.
3. Does the State Government decide how much a Financial Adviser gets paid under Section 44 of the Road Transport Corporations Act, 1950?
Under Section 44 of the Road Transport Corporations Act, 1950, the State Government makes rules for the pay scales of top roles like the Financial Adviser and Managing Director.
Test yourself
1.Under Section 44 of the Road Transport Corporations Act, 1950, who is responsible for creating rules about the term of office for Directors?
2.According to Section 44 of the Road Transport Corporations Act, 1950, what must be done with rules for them to become effective?
3.Under Section 44 of the 1950 Act, which group's allowances can the State Government define through rules?
4.Under Section 44 of the Road Transport Corporations Act, 1950, who determines how many shares are given to different parties?