The British India Corporation Limited (Acquisition of Shares) Act, 1981

What the law does

The British India Corporation Limited (Acquisition of Shares) Act, 1981 governs the Central Government's acquisition of shares in British India Corporation Limited, whose registered office was stated to be at Sutherland House, Kanpur, Uttar Pradesh. Its purpose was to secure proper management of the company and maintain and develop production of woollen fabrics considered vital to the country.

The law is a company share acquisition measure. The supplied text does not create rules for buying, selling, registering or developing land in Tamil Nadu.

Who is affected

The British India Corporation Limited (Acquisition of Shares) Act, 1981 primarily affects people who held qualifying ordinary or preference shares immediately before 11 June 1981, their legal representatives, and certain people claiming through properly executed share transfer instruments. It also affects banks or other creditors holding pledged qualifying shares.

Shares held by the Central Government, State Governments and specified public financial institutions are excluded from the definition of shares acquired under the law.

Key provisions

The British India Corporation Limited (Acquisition of Shares) Act, 1981 provides that:

• All qualifying company shares transferred to and vested in the Central Government on 11 June 1981.
• The Central Government was treated as registered as the holder of each acquired share.
• Acquired shares were freed from trusts, mortgages, charges, liens and other encumbrances. Restrictions arising from attachments, injunctions, decrees or orders were treated as withdrawn.
• Existing company rights to recover unpaid share value, and shareholder rights to receive dividends or other payments already due, were preserved.
• The Central Government could change the board, memorandum and articles of association so that the company could function as a government company.
• The Central Government was to provide shareholders a total cash amount of rupees twenty-two lakhs and sixty thousand, with simple interest at four percent per year for the stated period.
• A Commissioner of Payments was to receive, examine, admit or reject shareholder claims and distribute money.
• Preference shareholders had priority over ordinary shareholders in relation to the amount paid to the Commissioner.
• Claimants generally had thirty days from the specified date to submit claims. A further thirty days could be allowed for sufficient cause, but not beyond that period.
• Claimants had to provide proof within the period advertised by the Commissioner or be excluded from distributions.