AAFC Act 7

Section 7 · Share capital and members

(1)

A Corporation shall have an authorised ordinary share capital divided into shares of Rs. ten each.

(2)

A Corporation may also have preference share capital divided into share of Rs. ten each.

(3)

The State Government shall subscribe to not less than fifty-one per cent of the authorised ordinary share capital of a Corporation either in cash or by way of the value of the land, buildings, equipment or machinery or any other assets transferred to the Corporation.

(4)

Each agriculturist joining a Corporation at the time of its formation under Section 3 or on admission to the Corporation subsequent to its formation shall contribute in cash to one ordinary share of the Corporation.

(5)

No agriculturist shall be allowed to hold more one ordinary share in a Corporation.

(6)

The State Government or an agriculturist holding an ordinary share in a Corporation may also contribute to the preference share capital of the Corporation either in cash or by way of the value of the land, buildings, equipment or machinery or any other assets transferred to the Corporation.

(7)

A holder of one or more of the ordinary shares in a Corporation shall be known as "Member" of the Corporation.

(8)

An agriculturist holding an ordinary share in a Corporation shall be known as an "Agriculturist Member".

(9)

No member shall transfer or dispose of the shares held by him in the Corporation except in the manner prescribed.

(10)

Notwithstanding anything contained in any other provisions of this Act, no member of a family of which another member is already an agriculturists member of a Corporation, shall be admitted as an agriculturist member of either that Corporation or any other Corporation.

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