Amendment status not verified — confirm the current text below against the official source.
The conditions of a guarantee by the '[Centra] e of i Government] of a minimum return on the whole or part U T of the capital of a joint stock company shall be— (a) that the industry shall be subject to the con. ditions of section 26 in respect of inspection, returns and accounts; (b) that a minimum portion of the authorized - capital of the industry to be fixed according to the circumstances of each case has been subscribed and paid in cash; (c) that no such guarantee shall in any case ex- tend beyond a period of 5 years; (d) that during the period to which the guarantee extends, the ![Central Government] may im- pose on such persons as it considers to be directly concerned in the promotion of the company, a condition that if they transfer any of their shares without the consent of the *[Central Government], they shall be liable jointly and severally to refund the ![Central Government] any sums paid to the company in fulfilment of the guarantee ; (e) that the '[Central Government] shall be en- titled to recover the whole or any part of the sum paid by the *[Central Government] on account of such guarantee with interest at the rate in force on the date of the agreement for loans granted under the land Improve- ment Loans Act, 1883, at any time after such !Substituted for the words “State Government” by the Punjeb Reorganisation (Chandigarh and Himacha] Pradesh) Adaptation © Laws on Concurrent and State Subjects) No. 2 Order, 1968. 1935 Ph. Act V| AID TO INDUGTRIES 3o period as may have been laid down in the agreement, provided that the *[Central Gov- ernment is satisfied that the company is pay- ing or is able to pay interest or a dividend upon , the capital shown as paid in excess of such rate as may be fixed in the agreement and suph recovery shall be made in the manner laid down in sections 23, 24 and 25: Provided that the sum recoverable by the *(Central Government] in any one year shall not exceed a sum equal to half the net profits made by the company in the preceding year in excess of the sum required for the payment of interest or dividend at the rate fixed in agreement.