Section 26 in The Central Warehousing Corporation Rules, 1963
26. Shareholders disqualified to give intimation to the Board.
(1)It shall be the duty of every institution registered as a shareholder, for therewith, upon ceasing to be qualified to be so registered, to give intimation thereof to the Board.(2)The Board may, at any time, cause such enquiry to be made as it may consider necessary, for ascertaining whether any institution registered as a shareholder has ceased to be so qualified and upon being satisfied about this, it shall intimate the shareholder that the shareholder is not entitled to be a shareholder of the Corporation. On such intimation, the shareholder shall not be entitled to the payment of any dividend on any such share or to exercise any of the rights of a shareholder otherwise than for the purpose of the sale of such share and the corporation shall make an entry in the register to that effect.(3)If the Board finds that an institution, which is not qualified to be a shareholder of the Corporation, is registered by inadvertence of otherwise as a shareholder of the Corporation, it shall informs such shareholder that the shareholder is not entitled to the payment of any dividend on such share or to exercise any of the rights of a shareholder otherwise than for the purpose of the sale of such share and shall make an entry in the register to that effect.
