State Financial Corporations Act : Disposal of profits. Indian Bare Acts :

State Financial Corporations Act,1951

Act No : 63

Section : Disposal of profits.

35. Disposal of profits. (1) The Financial Corporation shall establish a reserve fund. (2) After making provision for bad and doubtful debts, depreciation of assets and all other matters which are usually provided for by banking companies, the Financial Corporation may out of its net annual profits declare a dividend : Provided that for so long as the reserve fund is less than the paid-up share capital of the Financial Corporation and until there has been repaid to the State Government such sum, if any, as that Government may have paid under guarantee given in pursuance of section 6, or 4*[section 7 or section 8], the rate of such dividend shall not exceed the rate guaranteed by the State Government under section 6. 5* * * * *