Section 40 in The Maharashtra Non-Trading Corporations Act, 1959
40. Investment of corporation to be held in its own name.
(1)Save as otherwise provided in sub-section (2) and subject to the provisions of sub-sections (3) to (5),–(a)all investments made by a corporation on its own behalf shall be made and held by it in its own name; and(b)where any such investments are not so held at the commencement of this Act the corporation shall, within a period of one year from such commencement, either cause them to be transferred to, and hold them in, its own name, or dispose of them.(2)Nothing in sub-section (1) shall be deemed to prevent a corporation from depositing with a bank, being the bankers of the corporation, any shares or securities for the collection of any dividend or interest payable thereon.(3)The certificate or letter of allotment relating to the shares or securities in which investments have been made by a corporation shall, except in the cases referred to in sub-section (2), be in the custody of such corporation or with a Scheduled Bank, being the bankers of the corporation.(4)Where, in pursuance of sub-section (2) any shares or securities in which investments have been made by a corporation are not held by it in its own name, the corporation shall forthwith enter in a register maintained by it for the purpose–(a)the nature, value, and such other particulars as may be necessary fully to identify the shares or securities in question; and(b)the bank or person in whose name or custody the shares or securities are held.(5)The register kept under sub-section (4) shall be open to the inspection of any member of the corporation without charge, during business hours, subject to such reasonable restrictions as the corporation may, by its articles or in general meeting, impose, so however that not less than two hours in each day are allowed for inspection.
