The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970

ACT NO. 5 OF 1970

PREAMBLE

An Act to provide for the acquisition and transfer of the undertakings of certain banking companies, having regard to their size, resources, coverage and organisation, in order to control the heights of the economy and to meet progressively, and serve better, the needs of development of the economy in conformity with national policy and objectives and for matters connected therewith or incidental thereto.

ARRANGEMENT OF SECTIONS

CHAPTER I
PRELIMINARY SECTIONS

1. Short title and commencement
2. Definitions.
   CHAPTER II
   TRANSFER OF THE UNDERTAKINGS OF EXISTING BANKS AND SHARE CAPITALS OF THE CORRESPONDING NEW BANKS
3. Establishment of corresponding new banks and business thereof.
   3A. Trust not to be entered on the register.
   3B. Register of beneficial owners.
4. Undertaking of existing banks to vest in corresponding new banks.
5. General effect of vesting.
   CHAPTER III
   PAYMENT OF COMPENSATION
6. Payment of compensation.
   CHAPTER IV
   MANAGEMENT OF CORRESPONDING NEW BANKS
7. Head office and management.
8. Corresponding new banks to be guided by the directions of the Central Government.
9. Power of Central Government to make scheme.
   9A. Power of Reserve Bank to appoint additional director.
   CHAPTER V
   MISCELLANEOUS
10. Closure of accounts and disposal of profits.
    10A. Annual general meeting.
    10B. Transfer of unpaid or unclaimed dividend to Unpaid Dividend Account.
11. Corresponding new bank deemed to be an Indian company.
12. Removal of Chairman from office.
    12A. Bonus.
13. Obligations as to fidelity and secrecy.
14. Custodian to be public servant.
15. Certain defects not to invalidate acts or proceedings.
16. Indemnity.
    16A. Arrangement with corresponding new bank on the appointment of directors to prevail.
17. References to existing banks on and from the commencement of this Act.
18. Dissolution.
    18A. Supersession of Board in certain cases.
19. Power to make regulations.
20. Amendment of certain enactments.
21. Repeal and savings.
    THE FIRST SCHEDULE.
    THE SECOND SCHEDULE.
    THE THIRD SCHEDULE.

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The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970

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