12. Regulation of Paid-up capital, subscribed capital and authorised capital, and voting rights of share holders
:- No banking company shall carry on business {Subs.ibid., for ” in any State “.} [in India], unless it satisfies the following conditions, namely:—(i)that the subscribed capital of the company is not less than one-half of the authorised capital, and the paid-up capital is not less than one-half of the subscribed capital and that, if the capital is increased, it complies with the conditions of prescribed in this clause within such period not exceeding two years as the Reserve Bank may allow;(ii)that the capital of the company consists of ordinary shares only or of ordinary shares and such preference shares as may have been issued prior to the 1st day of July, 1944;(iii)that, subject to the provisions contained in clause (iv) here of, the voting rights of any one shareholder, whether a preference shareholder or an ordinary shareholder, are strictly proportionate to the contribution made by him to the paid-up capital of the company;(iv)that the voting rights of any one shareholder do not exceed five per cent.of the total voting rights of all the share holders:Provided that nothing contained in this section shall apply to any banking company incorporated before the 15th day of January, 1937.
