Legal Document View

Unlock Advanced Research with PRISMAI

Integrated with over 4 crore judgments and laws — designed for legal practitioners, researchers, students and institutions

- Know your Kanoon - Doc Gen Hub - Counter Argument - Case Predict AI - Talk with IK Doc - ...
Upgrade to Premium
[Cites 0, Cited by 5] [Entire Act]

Union of India - Section

Section 18 in The State Bank Of India (Subsidiary Banks) Act, 1959

18. Transferability of shares.

(1)Save as otherwise provided in sub-section (2), the shares of a subsidiary bank shall be freely transferable.
(2)Nothing contained in sub-section (1) shall entitle the State Bank to transfer any shares held by it in any subsidiary bank such transfer will result in reducing the shares held by it to less than [fifty-one percent of the issued capital consisting of equity shares] [Substituted [fifty-five percent of the issued capital] by Act 30 of 2007 (w.e.f. 18.6.2007) ] of that subsidiary bank.[18A. Right of registered shareholder to nominate. - (1) Every individual registered shareholder of a subsidiary bank may, at any time, nominate, in the prescribed manner, an individual to whom all his rights in the shares shall vest in the event of his death.
(2)Where the shares are registered in the name of more than one individual jointly, the joint holders may together nominate in the prescribed manner, an individual to whom all their rights in the shares shall vest in the event of the death of all the joint holders.
(3)Notwithstanding anything contained in any other law for the time being in force or in any disposition, whether testamentary or otherwise, in respect of such shares where a nomination made in the prescribed manner purports to confer on any individual the right to vest the shares, the nominee shall, on the death of the shareholder or, as the case may be, on the death of all the joint holders, become entitled to all the rights of the shareholder or, as the case may be, of all the joint holders, in relation to such shares to the exclusion of all other persons unless the nomination is varied or cancelled in the prescribed manner.
(4)Where the nominee is a minor, it shall be lawful for the individual registered as the holder of the shares to make nomination to appoint, in the prescribed manner, any person to become entitled to the shares in the event of his death during the minority of the nominee][New section added by Act 30 of 2007 (w.e.f. 18.6.2007) ][19. Restriction on voting rights. - No shareholder, other than the State Bank, shall be entitled to exercise voting rights in respect of any shares held by him in excess of ten per cent. of the issued capital of the subsidiary bank concerned:Provided that the shareholder holding any preference share capital in the subsidiary bank shall, in respect of such capital, have a right to vote only on resolutions placed before such subsidiary bank which directly affect the rights attached to his preference shares:Provided further that no preference shareholder shall be entitled to exercise voting rights in respect of preference shares held by him in excess of ten per cent. of the total voting rights of all the shareholders holding preference share capital only][Substituted by Act 30 of 2007 (w.e.f. 18.6.2007) ][Substituted by Act 56 of 1962, Section 3, for sub-section (13) (w.e.f. 1-1-1963)]
Prior to substitution section 19 read as -19. Restriction on individual holdings.- (1) No person shall be registered as a shareholder in respect of any shares in a subsidiary bank held by him, whether in his own name or jointly with any other person, in excess of two hundred shares, or be entitled to payment of any dividend on the excess shares held by him, or to exercise any of the rights of a shareholder in respect of such excess shares otherwise than for the purpose of selling them:Provided that nothing contained in this sub-section shall apply to--(a) the State Bank;(b) a State Government;(c) a Corporation;(d) an insurer as defined in the Insurance Act, 1938 (4 of 1938);(e) a local authority;(f) a co-operative society;(g) a trustee of a public or private religious or charitable trust;(h) a shareholder of an existing bank who is allotted any shares under sub-section (9) of section 13.(2) Notwithstanding anything contained in sub-section (1), no person referred to in the proviso to that sub-section, other than the State Bank, shall be entitled to exercise voting rights in respect of any shares held by such person[in excess of one per cent.] [Substituted by Act 55 of 1963, Section 30, for "in excess of five per cent." (w.e.f. 1-2-1964)]of the issued capital of the subsidiary bank concerned.