Dissolution of Board

(1) If the State Government for any reason are of opinion that it is not necessary to continue the Board it may, by notification in the Gazette, dissolve the Board from such date as may be specified therein.

(2) Upon the publication of a notification under sub-section (1) dissolving the Board,—

(a) the Chairman and all the other members of the Board shall, as from the date of dissolution, vacate their offices as such;

(b) all the powers and functions which are, by or under the provisions of this Act, exercised and performed by or on behalf of the Board and the Chairman shall, as from the date of dissolution, be exercised and performed by the State Government or such authority or person as it may appoint in this behalf;

(c) all funds and other property vested in the Board shall vest in the State Government; and

(d) all liabilities legally subsisting and enforceable against the Board shall be enforceable against the State Government to the extent of the funds and properties vested in it.

(3) Nothing in this section shall affect the liability of the State Government in respect of bonds or debentures guaranteed by the State Government.