Section 8 of The Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002
- (1)The Administrator shall, immediately on redemption of all the schemes of the specified undertaking and the payment of entire amount to 1[investors or from such date as may be notified by the Central Government in the Official Gazette, whichever is earlier,] vacate his office; but nothing in this sub-section shall be construed as prohibiting his appointment as a member of the Board of Advisers after vacation of his office as such.
- (2)On the vacation of his office, the Administrator shall forthwith deliver, to the Central Government or any institution or officer specified by it, possession of all assets and properties representing and relatable to the specified undertaking which are in his possession, custody and control on the date immediately preceding the date on which he vacates his office as the Administrator.
Summary
- The Administrator must step down once all schemes are redeemed and investors are fully paid.
- The Central Government can also set a specific date for the Administrator to leave office if that date comes first.
- After leaving the role, the former Administrator is allowed to become a member of the Board of Advisers.
- Upon leaving, the Administrator must hand over all related assets and properties.
- These assets must be given to the Central Government or to an institution or officer chosen by the government.
Practical examples
FAQ
1. When does the Administrator have to leave office?
They must leave when all schemes are paid out to investors, or on a date chosen by the Central Government, whichever happens first.
2. Can the Administrator work for the undertaking after vacating office?
Yes, they can be appointed as a member of the Board of Advisers after vacating the Administrator role.
3. What must the Administrator do with the property when they leave?
They must immediately deliver possession of all assets and properties to the Central Government or an appointed institution.
Test yourself
Q1.Under Section 8 of The Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, which event forces the Administrator to vacate office?
Q2.Under Section 8 of The Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, what role can the Administrator take after vacating their office?
Q3.Under Section 8 of The Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, who receives the assets when the Administrator vacates office?
Q4.Under Section 8 of The Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, can the Central Government end the Administrator's term before all investors are paid?
Q5.Under Section 8 of The Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, what assets must be delivered when the Administrator vacates?