Section 6 in The State Financial Corporations (Amendment) Act, 2000
6. Insertion of new section 4D.- After section 4C of the principal Act, the following sections shall be inserted, namely:-" 4D. Issue of redeemable preference shares.- (1) On and after the commencement of the State Financial Corporations (Amendment) Act, 2000 , the Financial Corporation may-(a) issue redeemable preference shares on such terms and in such manner as the Board may decide; and
(b)convert, such number of equity shares as it may decide into redeemable preference shares, with the prior approval of the State Government and the Small Industries Bank, by a resolution passed in the general meeting of the shareholders: Provided that such conversion shall in no case reduce the equity shares held by the parties referred to in clauses (a), (b) and (c) of sub- section (3) of section 4 to less than fifty- one per cent. of the issued equity capital of the Financial Corporation(2) The redeemable preference shares referred to in sub- section (1) shall-(a) carry such fixed rate of dividend as the Financial Corporation may specify at the time of such issue or conversion; and(b)neither be transferable nor carry any voting rights.(3)The redeemable preference shares referred to in sub- section (1) shall be redeemed by the Financial Corporation in such instalments and in such manner as the Board may determine.
