Section 16G
Application of Act 1 of 1956.
About this Act
An Act to provide for the control by the Union of the Tea industry, including the control, in pursuance of the International Agreement now in force, of the cultivation of tea in, and of the export of tea from, India and for that purpose to establish a Tea Board and levy a duty of excise on tea produced in India.
1[16G. Application of Act 1 of 1956.--(1) Where the management of a tea undertaking or tea unit
owned by a company has been taken over by any person or body of persons authorised by the Central
Government under this Act, then, notwithstanding anything contained in the said Act or in the
memorandum or articles of association of such company,--
(a) it shall not be lawful for the shareholders of such company or any other person to nominate or appoint any person to be a director of the company;
(b) no resolution passed in a meeting of the shareholders of such company shall be given effect to unless approved by the Central Government;
(c) no proceeding for the winding up of such company of for the appointment of receiver in respect thereof shall lie in any court except with the consent of the Central Government.
(2) Subject to the provisions contained in sub-section (1), and to the other provisions contained in this Act, and subject to such other exceptions, restrictions and limitations, if any, as the Central Government may, by notification in the Official Gazette, specify in this behalf, the Companies Act, 1956 (1 of 1956), shall continue to apply to such company in the same manner as it applied thereto before the issue of the notified order.]
(a) it shall not be lawful for the shareholders of such company or any other person to nominate or appoint any person to be a director of the company;
(b) no resolution passed in a meeting of the shareholders of such company shall be given effect to unless approved by the Central Government;
(c) no proceeding for the winding up of such company of for the appointment of receiver in respect thereof shall lie in any court except with the consent of the Central Government.
(2) Subject to the provisions contained in sub-section (1), and to the other provisions contained in this Act, and subject to such other exceptions, restrictions and limitations, if any, as the Central Government may, by notification in the Official Gazette, specify in this behalf, the Companies Act, 1956 (1 of 1956), shall continue to apply to such company in the same manner as it applied thereto before the issue of the notified order.]
Notes
1. Ins. by Act 75 of 1976, s. 2 (w.e.f. 11-6-1976).