Section 26 of The Small Industries Development Bank of India Act, 1989
Liquidation of Small Industries Development Assistance Fund.
The Small Industries Development Assistance Fund shall not be closed or wound up save by order of the Central Government and in such manner as that Government may, 1*** direct.
Summary
- This provision creates a strict rule for shutting down the Assistance Fund.
- The Assistance Fund cannot be closed or liquidated through normal corporate bankruptcy rules.
- Only the Central Government has the authority to order the fund to be closed.
- If the Central Government orders it closed, it must be done in the exact manner that the government directs.
Practical examples
FAQ
1. Can the Board of Directors vote to close the Assistance Fund?
No, the fund cannot be closed except by an order from the Central Government.
2. If the fund is losing money, does it automatically go into liquidation?
No, it remains open until the Central Government explicitly directs it to be wound up.
3. Who decides the process for closing the fund?
The Central Government directs the exact manner in which the fund will be closed.
Test yourself
Q1.Under Section 26 of The Small Industries Development Bank of India Act, 1989, who holds the power to order the closure or liquidation of the Assistance Fund?
Q2.Under Section 26 of The Small Industries Development Bank of India Act, 1989, what rules dictate the manner in which the Assistance Fund is wound up?
Q3.Under Section 26 of The Small Industries Development Bank of India Act, 1989, can a local court order the liquidation of the Assistance Fund?
Q4.Under Section 26 of The Small Industries Development Bank of India Act, 1989, what happens if the Board wishes to close the Assistance Fund?